Scientists have discovered the simplest and most effective way to save money

Everyone is familiar with the situation when money runs out, but it’s impossible to remember where it went. It seems that you were going to save, but in the end you were faced with a financial shortage and psychological discomfort. Australian scientists investigated this phenomenon and found out its causes. And besides this, they told us what the secret is to simple and effective savings.

Experts at the University of Adelaide Business School in Australia analyzed scientific papers and sociological studies over the past 40 years to understand where money is disappearing. They studied data from more than 11 thousand people who participated in surveys and experiments. The result was the discovery of the effect of non-cash payment.

The essence of the effect is this: when we pay with a bank card or other non-cash method, we spend more than when paying in cash. When we use cash, we hold it in our hands and count it, which makes the payment process more tangible. But when we don't convey anything tangible to the seller, the sense of the money spent is lost.

The effect is especially noticeable during conspicuous consumption, that is, when we buy something that emphasizes our status. For example, when buying jewelry, a person is willing to pay much less in cash than with a card, and at the same time he will hesitate longer. The card holder will make a purchasing decision faster and will choose a more expensive piece of jewelry without hesitation.

However, the effect of cashless payment does not work in all situations. The exception is when people donate money or leave tips. In such cases, payers part with approximately the same amounts, regardless of the form of payment.

From all of the above, it follows that to save money, it is better to carry cash with you rather than bank cards. This is a good way of self-control that will quickly bring tangible results. This will help you plan your budget better and refrain from making unplanned or overly expensive purchases.

So far, scientists have only studied card payments. But these days, other methods of payment without physical money are also common. For example, “buy now, pay later” services or cryptocurrency payments. Their influence on our lives remains to be studied in the future.