Would You Like to Up Spend With That?

What is your favourite way to pay for small purchases?  Is it cash, or are you a “tap and go” junkie on your plastic or phone?

If your preference is “tap and go” then you need to read this.

I have seen research that indicates that we spend over 10% more when using plastic cards than when using cash.  One of these studies was done by McDonalds in the USA who found that their average transaction supposedly rose from $4.50 USD to $7.00 USD when customers used plastic instead of cash.

Now you could argue that the McDonalds study is an urban myth as it is hard to find real facts about the study.

But I reckon the real world proves that it is not an urban myth.

In the real world, even though places like the supermarket and fast food places like McDonalds are legally able to charge you a fee to use your plastic they don’t – when it actually costs them money.

And the reason has to be simple.

Their research must have indicated that they make more money from your extra spending on plastic than it costs them to allow you to pay this way.  You could almost guarantee places like McDonalds would charge you credit card fees it if didn’t impact on your spending.  I call this my “Would You Like to Up Spend With That?” Theory.  It is a bit more subtle than McDonalds “Would you like Fries with that”, or their “Would you like to up size with that” questions every time your order, but I reckon it is probably just as powerful!

So based on my “Would You Like to Up Spend With That?” Theory, maybe it’s time for you to leave the plastic in your wallet, and stop the “tap and go” easy spend (more) mentality.  And start considering whether you really want to pull that cold hard cash out of your pocket on whatever you think you need to buy.

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Do you and your family a favour and start taking steps so you can improve the health of Your Wealth and get off the treadmill of working till you drop.

Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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