How The Envelope Budgeting System Can Stop You from Overspending

Did you know, that shoppers can spend up to 100% more when using their credit cards to pay instead of cash? In a study published by Drazen Prelec and Duncan Simester of MIT, they found out that shoppers were willing to pay up to 100% more when they were paying with a card. Overspending is easier as there’s no immediate penalty for using a credit card. Imagine that you went to a restaurant with your family with $100 in cash. You’d be careful with what you order so that you don’t run out of cash. If you can’t pay, you…...