Balancing your finances feels like a never-ending dance. Whether it’s the grocery bill, entertainer, or daily items, it’s all about keeping what you pay for in balance.
This article is about breaking down the effect each payment method has on your money habits. We will look at the way online transactions can flatten out budgeting and see if physically paying at the store would be more thoughtful.
Benefits of Online Payments
Paying is as easy as several clicks; thus, you immediately trace transactions. This may ease how you sort your money this way:
- Automatic Accounting: Most forms of online transactions- PayPal, wire transfer, and even credit card accounts- are automatically charged to you.
- Set Reminders & Recurring Payments: most online services allow you to schedule your payment or even set up reminders for when the bills become due so as not to incur late fees, and you will not have extra charges at the end of the month.
- Less Impulse Buying: the fact that online transactions take many more steps than just pulling out the money discourages impulse buying.
There is a downside, however. Money is less easily lost sight of when it is not being handed out.
The instant sense of being parted with, which occurs when you’re paying at a convenience store or other physical outlet, sets a limit in your pocket.
Benefits of Paying In-Person
If you pay with cash or even with a card, you feel the impact of how much you are spending. Let’s see why:
- Sensing Directly: When you pay cash or swipe a card, the money is gone in a way that is so much more tangible, “real,” and that attaches you directly to your money.
- The Power of Limits: You are likely to have clearer limits on how much you can spend when you pay in cash, especially when paying in cash.
- The Risk of Impulsive Spending: On the flip side, paying in person at a convenience store is likely to result in impulse buying because products physically surround you, and those quick, small items (like snacks or drinks) can add up.
Application:
One easy thing to get out of hand is gambling or gaming, especially on things like slot machine games. Whether online or in person, it’s easy to get hooked up in the excitement of the game.
However, this style of spending can be difficult to track unless you keep a tight rein on your budget. Of course, payments both in-store and online have their merit here: a preset spending limit or use of cash at the store will keep you from overspending on this kind of entertainment.
Wrapping Up
At the end of the day, online transactions, like that of a payment in a convenience store, have their advantages and disadvantages. For one, it can easily stream your finances, making budgeting easier to handle. But at the same time, it might lead to overspending if you’re not keen enough. Meanwhile, a person-made payment would make you much more conscious about your money, but sometimes you might be tempted to splurge. The trick is a balance. Whichever it is, being aware of your spending habits and putting in clear boundaries would keep you in budget.
