Cash is King in the Money Deck
Credit Cards Are the Joker in Your Money Deck
How do you spend your money?
Do you use cash only?
Do you write checks?
Do you send money orders?
Do you transfer money via PayPal or a Venmo type of account?
Do you primarily just use credit cards?
Do you really know?
Did you answer yes to all of the above? Few use money orders for necessities or to pay the utility company or the phone company, but you would be amazed at how many people still use them to transfer money. It’s not uncommon to find the ability to send a money order at your grocery story … usually next to the lottery ticket dispenser.
In an ideal world you would pay with cash for everything. But most people don’t have tens of thousands of dollars to pay cash for a new home or car or unexpected medical expenses that your insurance doesn’t cover
Life happens! Let’s start with why you should pay with cash. Cash is real! When you open your wallet to pay for something, whether it’s a week’s groceries, your kid’s new shoes, or tank full of gas, you’re more aware of what you spend.
More reasons for using cash
Part of the awareness is just how long you had to work to get that amount of cash.
You not only spend less money when you pay with cash but you are also less likely to overspend.
Some businesses may give you a discount when you pay with cash.
Cash is immediate. You are paying now and not sometime in the future
When you pay with cash it’s all you pay. There is no additional fee in the form of interest or other add-on fees.
Consider this. It is becoming more common for businesses and vendors to charge an extra fee for using a credit card to pay for merchandise.
The further away from actual cash, the less real your spending becomes. If you’re buying something using a credit card versus cash or check the real costs toolkit will be masked.
Patricia Lane Williams CPA is the author of Your Money: How to Get Hold of Your Money Before Debt Gets Hold of You. As a trusted resource for the accounting profession for over 30 years providing content for their continuing education. Her website is PatWilliamsAuthor.com and she can be reached at PatWilliams.Author@gmail.com.