Back in May, I wrote about a column by Michelle Singletary which quoted statistics regarding credit card usage studies. It indicated that even people who paid off their credit card balances each month spent more on purchases than if they paid cash. I have spent the past two months trying to pay cash for purchases. Here are my observations. First – I’m not used to carrying more than $20 cash!! I found I was extremely nervous being out in public with the amount of cash I needed for weekly purchases (primarily groceries and gasoline). Second, it’s terribly inconvenient for me to get to a bank to withdraw the cash I need (my paychecks are set up for direct-deposit, so no need to go for that anymore!) Third, since I have one of the credit cards where I earn a percentage back with every purchase, I would fork over the cash and mentally calculate how much money I *could* have been accruing. Fourth, since I hate, hate, hate shopping (did I mention I hate it?) budgeting a certain amount of cash is difficult because I tend to save all my shopping and do it in bunches (usually rainy days when I can’t be on the bike!) This means I need oodles of cash on one day and nothing for stretches in between. With all that said, however, I can definitely say that I have enjoyed not having to pay a credit card bill every month. I plan on continuing this experiment for several more months, to see how purchases average out. So far, my cash vs. credit expenses look to be very equal, but it will be interesting to see if there will be a difference long-term. To be continued!