Topic: Can we afford to lose touch with money? - page 2. (Read 1155 times)

Question 1 : If Bitcoin or Crypto currencies replace fiat, would you spend more or less? The same. Bitcoin is less tangible than fiat can be - it's all about debits and credits on a computer screen, which makes it easy to "lose touch" with how much you really have or how much you're really spending.

Question 2 : Do you think physical contact with your money, makes you spend less? I like to think it does, but I always have a debit card in my pocket, so it comes down to how committed I am in the moment to only spend cash rather than use my card.

Question 3 : Would we have less debt, if we paid for everything in fiat? No sure I understand, do you mean fiat vs. crypto or fiat vs. credit or something else? I think spending will be the same between fiat and crypto (provided things can be bought as easily with crypto, which is not the case right now.) Removing the credit option would absolutely reduce debt, by definition, but limit growth as it would be tough to get a degree or buy a home without credit. If credit for material or consumer goods were limited we would see a greater control of the use of credit.

This is a really interesting topic to discuss, thanks for sharing it and the reality show (i'll be checking it out!) I've found that when I have access to check my bank account balances on a daily basis I don't spend as much, I save more, and I'm more wise with my money. When I don't have access I slip off the financial rails. So I do lose touch with my money when I don't have visibility into it.

1) Depends what the climate and value of bitcoin is. If the price is high then I'd spend, but if it keeps rising I'd probably save.
2) No, but I can see how people would get carried away with credit cards and spend money they don't have. Money in your pocket in a wad of notes always seems like more than just numbers on a screen.
3) Not really, unless you mean people don't pay on credit cards. People could still take out loans though.

The thing that I can't understand is all this stuff that people fight over kids learn in school, and NO ONE cares that children aren't taught financial literacy in high school!  I mean ALL students should have a mandatory financial education class that teaches the lifetime value of living within your means, the dangers of auto loans, credit card debt, and building wealth.

I think the fact that this stuff is excluded from curriculum is sad and frankly intentional.  It would be the best way for young people to start their lives out on the right foot, be able to buy a house/build wealth from early on, not learn the hard way after they get out of college with 100k in student loans and 20k in credit card debt.  Starting out your adult life like that is not good, and makes it tough to gain financial independence.  Then again, the debt masters of the world want you to remain a debt slave forever...

That is true. When you hold physical cash you will think twice before spending it. But same is not with the credit cards,debit cards or even bitcoins as you know that paying with credit cards gives you some added time to pay so people spend more  but same doen't goes with physical cash.

It is recommended by some financial experts (especially Dave Ramsey) to use a cash envelope for ALL spending.  At the beginning of the month you fill all categorized envelopes with the cash you need, then use each one for only that category (ie gas, food, household goods, etc).  This requires a strict budget to be created FIRST with all of your spending accounted for.

A LOT of people have paid down or paid off their debt by controlling their spending using this method. ..I've been meaning to try it myself

I have done this experiment with my kids, and it's remarkable how much less they spend, when they handle money.
The touching and the feeling of a physical thing, kind of bonds you to it. This is why vending machines and slot machines in gambling replaced the coin operation in my opinion, with smart cards. The emotional bond to money is broken and people tend to spend more. 

Bitcoin makes a lot of other things easier, but it might increase spending habits and increased debt. 

I am positive if everyone did this, they would spen less.

Its SO easy to walk into a store and grab even 10-$20 worth of stuff you dont NEED, but with a credit card there is no IMMEDIATE paid of spending.  Its TOO easy.

With cash, seeing say $100 dwindle down to 25, when you coudl still have $50, clearly makes it harder to spend that extra $25.

But people want instant gratification these days, even if it means painfully paying off that credit card down the road

I would spend probably less, why, well simple, because saving money would finally mean something, as opposite to saving money in a currency thats constantly on a hyperinflation state.

i would spend the same to be honest, i would not buy something that i don't need because bitcoin is mainstream

i know that electronic payment are not well seen in the world, and someone was supporting the fact that cash will probably be used forever

but i like electronic payment much more, primarely reason may be stupid, but it's because there are no pesky cents to hold on my physical wallet

One of the biggest contributing factors to debt in the world, is the fact that we have literally lost touch with our money. The wide acceptance of payment methods where you do not physically trade with something you touch, for example Credit cards, debit cards and electronic money, could make it easier to spend money.

In South Africa, a company is testing this theory with a reality series, where the contestants are given their monthly salary in coins. The idea behind this is to see what impact this has on the spending habits of these people, when they pay for everything in physical coins.
 
Source : www.onerandfamily.co.za

Question 1 : If Bitcoin or Crypto currencies replace fiat, would you spend more or less?

Question 2 : Do you think physical contact with your money, makes you spend less?

Question 3 : Would we have less debt, if we paid for everything in fiat?