Use cash wherever possible
I know credit card brings a lot of convenience to its owner. You won't get robbed, no worries on not having enough money when paying, and with a swap of a plastic card, everything is being taken care for.
It is due to this convenience that everyone overspent on their purchases and live well above their means and get into financial problems.
So by using cash wherever possible, we will greatly reduce the risk of getting into credit card payment trouble.
That is very true. Some people live by that rule that if you do not have the cash to pay for it then it doesn't get bought. And that is great for staying out of debt but then again it kind of gets you when it comes to building credit. Everything in the financial world seems to have some sort of a double edged sword.
In some cases there is money to be saved by using cash. At the gas pumps, for example. I pay 5 cents less per gallon when I use cash to pay for my fuel.
Also, by using cash, you avoid the temptation of spending more. If you have a credit card with a higher limit than your balance, guess what? You're going to take your balance up to the limit. If you can just rely on cash only, when it's gone, it's gone. Time to go make more donuts!
I love having cash, but I hate the way it fritters away. It's like being on a diet - the peanuts and other nibblies add up and suddenly you're ten pund heavier than you were last week.
If I have cash in my purse, I have to have a steely will to keep it in there - if I know what I need it for, then it's a bit easier. Sometimes I'll carry around a few low denomination notes and change, and some higher notes, with no intention of spending the higher notes. So then if I'm in a fritter mood, I can spend on lots of little bits of things and get it our of my system. Again, it's like a diet - if I nibble on some low point nibblies - dried fruit, fresh fruit, sliced carrots, snowpeas etc, I can have quite a bit to eat with no unwanted extra weight.
It's when I blow my calorie limit on a cream cake or some fatty fried stuff that it turns ugly!
Starving yourself can lead quickly to splurges. Nibble knowledgably, and things can go along nicely.
Money is a means of exchange. What is important is what we do with it. The way we handle money says so much about us. Cash represents what we actually have. If you fritter money look at what you are doing with the rest of your life. Do you waste time? Do you waste food? Are you impulsive? Living within your means is a discipline that will pay off in other areas of your life. Using cash to purchase what you need is a measure you can trust. No cash, no purchase. It's that clear.
