What I Learned Paying With Cash Only for a Month

Thirty-one days without credit cards or electronic payments taught me some key lessons

Mar. 19, 2026 at 2:22am

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The author committed to paying for everything with cash for the entire month of January, forgoing credit cards, mobile wallets, and payment apps. This experiment revealed several lessons, including the need for a cash withdrawal strategy, the challenges of using large bills, and the fact that cash is still legal tender, though some businesses have found ways around accepting it.

Why it matters

This story provides insights into the psychological and practical differences between cash and digital payments. As more businesses move towards cashless transactions, it highlights the challenges consumers may face in maintaining intentional spending habits and the importance of preserving cash as a payment option.

The details

The author withdrew $300 from an ATM to start the month-long experiment of paying only with cash. They quickly discovered the expense of out-of-network ATM fees and the difficulty of using large bills, as many small businesses either couldn't break them or required extra verification. The author also found that while cash is still legally required to be accepted by most retailers, some businesses have found ways around this, such as offering reverse ATMs that convert cash into prepaid debit cards.

  • The author started the cash-only experiment on January 1, 2026.
  • In 2025, the average ATM fee hit $4.86, according to Bankrate's Checking Account and ATM Fee study.

The players

Jashim Khan

An associate professor and director of international business management at the University of Surrey in England whose research examines the psychology of holding and exchanging hard currency.

Cara Macksoud

A certified financial behavior specialist in Winter Park, Florida, and former Wall Street trader.

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What they’re saying

“'The physical act of holding and handing over cash creates a stronger sense of psychological ownership than using digital cards or third-party mobile payments,'”

— Jashim Khan, associate professor and director of international business management

“'When it's digital, you don't go through the physical motion of taking cash out of a wallet. We're missing the pain of paying. Every time you spend cash, your stack decreases, and the brain processes that loss.'”

— Cara Macksoud, certified financial behavior specialist

The takeaway

This experiment highlights the psychological and practical differences between cash and digital payments, and the importance of preserving cash as a payment option as more businesses move towards cashless transactions. It serves as a reminder that the convenience of digital payments can come at the cost of more intentional spending habits.