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Young Aussie bucks the cashless trend and reveals crazy results: ‘Gone through the roof’

Young Aussie bucks the cashless trend and reveals crazy results: ‘Gone through the roof’

Young Aussie bucks the cashless trend and reveals crazy results: ‘Gone through the roof’

A person giving a few notes to a customer next to comedian Matt Hey's balloon

Comedian Matt Hey was shocked at how much money he was saving after switching to cash only. (Source: Facebook/TikTok)

A young man has bucked the cashless trend taking over Australia and was stunned by the effect it had on his bank account. Aussies overwhelmingly prefer to tap and go with a card or digital payment system like ApplePay rather than fiddling with cash.

However, research has recently been published showing that people save much more money when they use physical money. Report author and senior lecturer in marketing at the University of Melbourne Alex Belli said Yahoo Finance this was due to a phenomenon known as the “cashless effect”.

“It’s the phenomenon of spending more money but also buying more products when you pay through non-cash methods – whatever they are, it could be credit cards or BNPL schemes – compared to cash,” Belli said .

Comedian Matt Hey has become the biggest supporter of cash after effectively ditching digital and card payment systems at the start of the year.

He’s been using cash ever since and said his savings “went through the roof” as a result.

“Anything recreational or anything I can buy in person, I’ll always use cash, and what I’ve found is that it makes me make a more informed decision about what I’m buying,” he said in a video.

The 29-year-old said there are certain areas, such as rent, streaming services or bills, where paying cash is either virtually impossible or very difficult. But he said there were so many other things he used to pay with a card without thinking about it.

“It takes a little getting used to, reprogramming to do it. But gosh, in my case, it’s so worth it,” he said.

The presence of cash made Hey question almost everything.

“I actually find myself saying, ‘Do I really want to spend my money on this, because then I won’t have money to spend on possibly something else that might come up?’” he said.

While some might not like the idea of ​​having to constantly check your choices or desires, he said it’s not all doom and gloom.

“Your financial literacy improves so much because you’re consciously purchasing things,” he said.

“And because I consciously buy things, at the end of the week I have more money left over because I decided not to buy as many things.”

Not only does using cash help him budget, Hey said he also avoids spending tens of dollars each month on card surcharges.

Depending on the type of card you use and how you use it when paying, you may incur a surcharge of between 0.5% and 1.9%.

While it may not seem like much at the time of purchase, it adds up easily.

Research published by Canstar this year found the average Australian spent $140 last year on electronic payment surcharges. When we add that up for the entire nation, that’s about $4 billion in a single year.

Belli said there’s an element of “pain” that comes with paying for things, and it’s much more prevalent when cash is involved.

“When we make consumption and shopping decisions, we tend to feel some pain and some happiness,” Belli explained to Yahoo Finance.

“You may feel pain because you’re not sure if you can justify the purchase you made, or because you feel guilty about buying a certain product.

“(Cash is) physical and you know exactly what you have.

“You can go to an ATM and take out the money you actually need, instead of having an unlimited amount of money like with a credit card.”

With 87% of payments in Australia being digital rather than cash, some businesses have opted to go cashless only.

This has generated a lot of outrage from Australians, so much so that some of these businesses have been able to deal with abuse from customers.

Hei said that in the six months since he started his cash-only perspective, he has never been able to use cash. He added that if a business didn’t accept cash, then he would probably leave because he was committed to his new mission.

But if trends continue as they are going, Hey has a little more than five years left before his mission becomes more difficult.

RMIT Associate Professor of Finance Dr Angel Zhong predicts Australia will become “functionally cashless” by 2030.

“I’m not saying we won’t see cash at all, and I’m not saying cash will lose value,” Zhong said. Yahoo Finance. “It’s more about how digital payments become mainstream payments for consumers. The transition is underway.”

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