Mental Accounting won the nobel prize. Are we following it?A few days earlier on a thread of Credit cards (Credit Cards- Are they advisable for purchase), few of us replied that using cash helps us to control the urges of spending too much. It's true because it's one of the reasons Prof: Richard Thaler (USA) won the Nobel prize in economics 2017.
People develop a simple code/mental account for the same source (Eg: money in hand now vs monthly income). This helps them to understand how much to spend based on the level pain of payment ( paying by cash - increased awareness of 'pain' so spend less Vs paying by card - decreased awareness of 'pain' so spend more).
Having limited cash in hand and then buying something has an impact on our behaviour to buy or shop. If you are doing it, then great, if not you can learn more from Google and decide for yourselves