The Benefits of Using Cash November 2011
There are some businesses that won’t accept cash anymore. For example, airlines that insist you pay by credit card if want to buy a drink or sandwich on board. This is unfortunate since there are definitely benefits to doing business with cash.
Number one on the list is that people spend less. People spend more using credit cards. If cash is used, there are no splurges when the money is gone.
Cash makes budgeting easy. When we spend cash, we count what’s left over after a purchase. Hardly any credit card buyers check their available credit after a purchase.
Buying with cash reduces indebtedness. Credit cards were originally designed to be used for convenience but now users accumulate debt. If the balance is paid in full every month, using a credit card is a management tool. But if not, the purchases cost more in the end because of the interest paid.
ash make people think about how money is spent and why. A trick used by some people to help determine whether to purchase an item is to calculate how many hours of work the item costs. It great way to discipline one’s self.
cash minimizes identity theft potential. Cash purchases don’t have accompanying numbers that put personal information at risk.
And cash helps local people since it stays with the merchant. This helps their bottom line since it’s less expensive for them to do business.
You may not be able to avoid needing a credit card to purchase certain items, but think again about how using cash for other purchases may help your finances in the long run.