We hear we should use cash more than credit and debit cards, but you still need to keep track of what you spend it on. Even using cash, it is easy to overspend. When you pay by check or credit/debit cards you have some record of where you spent the money. But with cash once its gone, you don’t know what it was for unless you keep track of it.

On the show, <a href=http://www.cnbc.com/id/33421145>Til Debt Do Us Part</a> Gail Vaz-Oxlade helps couples get out of debt and change their way of spending. In many cases they have not been keeping track of where their money is going. They are amazed by how much they actually owe and how much they have been paying in late fees and interest. And many have a lot of money spent in cash, which they don’t realize what they have spent it on.

Studies show that you spend more when you use a credit card, since you don’t feel the emotion of spending at the moment. When you are spending cash, you know that the money is being spent now. You think about what you are spending more when you are using cash, since you only have so much to spend.

So even if you spend cash, you need to keep track of how you spend it. A dollar here and there may not seem like a lot but can add up quickly.

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Nancy Kvamme

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