Why ditching contactless can save you hundreds of pounds a month

Are you always running short by the end of the month?   If you want to save more of your salary but can’t face the faff of scrutinising every penny leaving your account, help is at hand. Ditching contactless in favour of good old-fashioned cash has paid dividends for my savings and here’s how you can save more too.

Jane Austen on the new ten pound note
Jane Austen pictured on the new ten pound note

Why contactless makes you overspend

The technology behind contactless payments has made shopping effortlessly easy and now more than half (52%) of consumer purchases are made without cash.  With the swipe of a card, money can depart your account without a second thought. And that’s where the problem lies. During my working day, I frequently pop into Marks and Spencer on my way to work to pick up some milk and usually a few little treats to sustain me through the working day.  At lunchtime, I often nip into Boots in search of another miracle hair product that will transform me into the sleek, groomed being that inhabits my head.  Lured by the subliminal messaging lurking in the aisles, I make frequent unconscious decisions aided by the swift swipe of a card that makes every purchase effortlessly easy.   

Backed up by consumer research, a new survey published by Clearscore, demonstrates that 59% of British consumers have said that not having to hand over physical cash at the tills has led them to overspend. 40% of shoppers have confirmed that the ease of digital shopping has caused them to lose track of their spending to the extent that 24% have missed paying a bill and 15% have been forced to default on a loan, causing problems for their credit score.

How easy is to revert back to cash?

two folded ten pound notes
two ten pound notes folded up

Transported back to my student days, I withdraw £100 on Sunday morning to last me until Saturday.  I do a large food shop to sustain me for the week including healthy lunch ideas to save me squandering my pay check at Pret. Carrots, cucumber and celery are duly chopped ready for the salad extravaganza that awaits.   On Monday morning, I buy two pints of milk for the tea round but stop myself reaching for the croissants.

At lunchtime, I prowl round Cheapside and spot a bargain pair of trousers in Gap.  Normally, I wouldn’t think twice about whisking them off to the till but having to physically reach into my wallet to extract hard-earned cash makes me reconsider. As I mentally visualise my already groaning wardrobe, all desire dissipates and the trousers hang dejectedly back on the hanger. I console myself with a free chocolate from the sample tray at Hotel Chocolat which gives me the same momentary buzz of joy as the trousers.

My journey back from work is also often fraught with longing as I can’t resist a quick dash into Waitrose to pick up a post-work.  But the memory of paying out hard cash for my weekly shop deters me from buying yet more food for my packed fridge. Once at home, my Deliveroo app wickedly beckons me to order up any dish my heart desires but my ban on card payments stops me in my tracks. After a tasty Shepherd’s pie hand-made from wholesome ingredients, I can’t resist a quick peek at my bulging wallet. Throughout the whole working day, I’ve managed to spend a grand total of 98 pence on two pints of milk for my esteemed colleagues.  By the end of the week, I’ve saved £62.00 which if I keep it up would equate to an astonishing £248.00. At this rate, my trip to Costa Rica may come quicker than I imagined.

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