Big savings when you pay in cash? - FOX 35 News Orlando

Willis Report: Big savings when you pay in cash?

Posted: Updated:

What if I told you there is a way you can save your family 20 percent whether you are shopping at the grocery store or the mall -- guaranteed? You'd be surprised, right? We'll the reality is that most people who use cash only in their transactions spend 20 percent less than people who pay via credit cards, according to the National Foundation for Credit Counseling.

But how do you do it and just how difficult is it to dump the cards and pay in cash? That's the question we're asking viewers this week as we launch The Willis Report Cash Challenge. In the wake of the credit card breaches at retailers across the country, many of our viewers have been asking questions about just how hard it is to convert to paper (cash) over plastic (credit cards).

More and more people are opting for cash. According to a survey of shoppers conducted by Harris Poll on behalf of Feedzai, a cyber-security firm, forty percent of people who were aware of the data breaches are using cash more and plastic less. The breaches, more than anything else, seem to be spurring people to change their habits. Just last week, beauty retailer Sally Beauty Holdings, became the most recent retailer to go public with the news that hackers had broken into their systems. But the biggest breach occurred at Target, where information about 70 million customers was hacked during the Christmas season. Cyber security experts say it's no longer a question of whether your personal information will be stolen, but when.

To be sure, the adjustments can be difficult, but the payoffs are greater than just protecting your personal identity, although that's no small thing. Surveys show that people who use cash instead of credit cards spend less. And, it's easy to see why. Giving a cashier your cold, hard cash --the money you toiled to earn -- is a much different experience that handing over your credit card. Using plastic distances you mentally and emotionally from the transaction. It becomes an exchange that will happen in the future, say a month from now when you get your credit card statement, instead of something that's happening right now. I believe that credit cards are a powerful tool, if used correctly, but most of us use them as a crutch to upgrade our lifestyles beyond what we can afford.

Dumping the cards, then, has more appeal than ever. But making the change is no small task. What do you do if you have to fly cross country for a family emergency? What if the kids need something for a class assignment Monday and it's already late Sunday night? The challenges are real, but planning is the key to making going cash free work.

Most all-cash families make it work by planning their spending, developing a budget and buying only those things that fit the budget. Look, credit cards, in my view, are a powerful tool, but no substitute for actually figuring out what you should be spending. As a result, different people adopt a "Cash is King" lifestyle in different ways. Some use debit cards, others use checks. Some online shoppers buy gift cards. But the message is all the same. Pay now for what you buy now.

In the coming weeks and months will be following viewers who agree to take the challenge. If you believe cash is king, join us. Send us an email at gerriwillis.com or tweet or Facebook me @GerriWillisFBN.

  • Good Day ArchiveMore>>

  • Good Day Atlanta

    Recipes: A healthy take on Southern favorites

    Recipes: A healthy take on Southern favorites

    Tuesday, September 16 2014 12:39 PM EDT2014-09-16 16:39:34 GMT
    We challenged chef Curtis Aikens to lighten up two Southern classics, starting with sweet potato pie.Which usually involves a couple of sticks of butter, loads of sugar and buttermilk.
    We challenged chef Curtis Aikens to lighten up two Southern classics, starting with sweet potato pie.Which usually involves a couple of sticks of butter, loads of sugar and buttermilk.
  • FOX Comedies Return To Tuesday Night

    FOX Comedies Return To Tuesday Night

    Tuesday, September 16 2014 9:36 AM EDT2014-09-16 13:36:32 GMT
     Two of the hottest comedies on FOX return Tuesday night, so get ready for some new laughs with old friends!   First up, "New Girl" is
    Two of the hottest comedies on FOX return Tuesday night, so get ready for some new laughs with old friends! First up, "New Girl" is back for a fourth season, and cast members say expect a bit of a "reboot" of the series. What does that mean? Star H
  • Get Ready To "Rock" At Johns Creek Music School

    Get Ready To "Rock" At Johns Creek Music School

    Tuesday, September 16 2014 9:01 AM EDT2014-09-16 13:01:43 GMT
    It's a unique music school where kids jam out to The Beatles and Green Day, and learning to play an instrument also means learning to play with others.
     It's a unique music school where kids jam out to The Beatles and Green Day, and learning to play an instrument also means learning to play with others. There are nearly 150 School of Rock locations around the world, and now there's one in Johns Creek.
Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices