Cashless Trap. Today's world is set up to keep us poor

The Cashless Trap: Why Digital Money Might Be Making Us Poorer 

We don’t feel it when we tap. We don’t think twice when we click. But every digital transaction is silently draining our wallet—and our willpower. Welcome to the Cashless Trap. And if you’re not careful, it’s keeping you broke.” 

Today, we’re talking why digital money feels invisible and how that invisibility is rewiring our brain, our spending habits, and our financial future. We are going to learn how we can break free from it. 

Hi, it’s your friend Eva, and I’m in debt. No savings, no retirement and absolutely no business giving financial advice. But here we are.  Personal finance needs more honesty and less shame. If you're tired of being judged for being in debt, share and subscribe, I have some free downloads below. But before we start, I’m not a financial advisor. When it comes to financial advice or any advice you find on the internet, do your own research. 

The world changed in March of 2020. One of those changes was with how we paid for things. Up until that point we were using credit and debit cards. But after that, no one wanted to touch cash to pay for things. It’s not just using the actual card, you can tap with your phone.  

I remember forgetting my wallet at home. After the initial panic and remembering my phone was sitting on my desk in my bedroom, I then thought, crap I need to go home, get my wallet and come back. The cashier said I could tap with the credit card on my phone. I’m thinking “what is this witchcraft you speak of good sir?” Then he showed me how to pay with my phone. 

Let’s start with the psychology of invisible money. 

• Fact: Studies show people spend up to 100% more when using cards vs. cash. 

• Breakdown: Our brain registers pain when handing over physical cash. With digital, there’s no friction, just dopamine. I’m someone who chases dopamine, so I totally feel seen just in a bad way. 

• When We swipe, you’re not spending money. You’re spending numbness. 

Digital Payment Systems Are Designed to Trap Us 

• One-click ordering, buy-now-pay-later, auto-renewals. 

• Companies don’t want us to feel the money leaving. 

• Convenience is the new currency and you’re paying interest in impulse. One of the things that is keeping me in debt longer is my impulse spending. I’ve gotten better but it’s a struggle. I go to the store for three items. I walk out with those three items and a pack of gum, M&M’s and a cashmere sweater. 

The Budgeting Illusion  

• Traditional budgeting becomes challenging because our money is now moving in microtransactions. There’s a lot more to keep up with. We all work hard, it’s one more thing on our plate, one more thing added to our mental load. 

• Streaming, subscriptions, in-app purchases—all designed to slip under our radar. 
• Tip: “Track behavioral spending, not just categories.” 

Three ways we can escape the cashless trap 

• The digital cash envelope system with debit-only preloaded cards or apps. You can buy a Visa or Mastercard at your local store and it’s a preloaded debit card. You can add money as needed. When you're loading the card with cash from your bank account, it’s almost like using cash. You will see your cash being put on the card and it will be more than just that dopamine hit you will feel the pain. The 5 bucks it costs to activate it, will more than pay for itself when you’re not paying $100’s of dollars in interest on your credit card. 

• Do weekly spending reviews. 
• Try “Cash Days” once a week. Force your brain to feel the transaction again. 

Money we can’t feel is money we can’t control. The more seamless our spending becomes, the more disconnected we become and the further we get from our financial goals.