Day 7: Use Cash Instead of Credit 

He who buys what he does not need steals from himself. 
-Swedish Proverb

Discipline, self-restraint, and control are stemmed from having willpower. If we don’t think we can commit to any of these, let’s contemplate utilizing cash instead of a credit card. To help, here are three reasons you should consider cash over credit.


Step 1: Budgeting becomes easier when using cash

How you’re spending your money becomes clearer; for instance: set aside the cash you’ll use to fill up your gas tank each week. You now know the exact ratio of cash in and out. This way, it is easier to watch and control what you spend.

Step 2: Using cash helps keep your debt in check

Cash does not rack up unnecessary interests. When using a credit card, if we do not pay the total balance off each month, there is a cost. Now, we end up paying more than what we bargained for, is it worth it? When spending cash, we are more likely to be more mindful of what we buy, even look for deals vs. when using a credit card we just swipe and go.

Step 3: Your identity is more secure when using cash

Who would ever want their personal information hijacked? Using cash eliminates the likelihood of your identity being compromised while using your card at any time increases the chance of Id theft.

Deciding to use cash at the checkout VS reaching for a credit card can have more benefits than one realizes. I know it can seem easier to pull out a credit card instead of counting out the cash, but stick with me for a bit so that I may share with you three wonderful benefits of using cash instead of credit can have on your finances.

1. Budgeting becomes more manageable when using cash

Did you know using cash for your purchases can make it easier to stick to your budget? 

When you decide to use cash, how you are spending your money becomes much clearer, and it will be much easier to differentiate needs from wants. It’s more comfortable to hand over the plastic instead of cold hard cash.

To assist with ditching the credit card spending habit, try setting aside the total amount of cash you will need for the week, and if you are feeling quite motivated, how about for the month? Have a breakdown of what the cash is going towards. For example, gas: $30, grocery: $50, etc. Now you can track the exact amount that you are spending money on down to the last dollar! 

If you use up your grocery budget in the first week, you’ll learn a valuable lesson and hopefully make the necessary changes to fix your mistake. When you know how much you are using, budgeting for the week or even month seems more straightforward.

Would you rather pay for an item once, know that it is paid in full? Or end up having to pay over and over again?  This one transaction could possibly have you paying it off years down the line, plus interest? Discipline, self-restraint, and control are stemmed from having willpower. The more you practice, the easier it becomes. 

But, if you don’t think you can commit fully just yet, let’s contemplate utilizing cash instead of a credit card.

  2. Using cash keeps your debt under control

When using a credit card, you swipe and go! Just keep this in mind: swiping prolongs the inevitable: interest, fees, oh, and did I mention the dreaded INTEREST RATES!

So what is the alternative, you ask? Well, using cash! A great benefit of using cash is, it does not rack up unnecessary interests.

When using a credit card, if you do not pay the total balance off each month, there is a cost, and interest rates can be relatively high. Now, you end up paying more than what you bargained for. If you had just used cash, you could have bought more things you needed further down the line, instead of buying one for the price of two; is it worth it?

When spending cash, you are more likely to be more mindful of what you buy; you might even be more open-minded about looking for sales, clearance items, and deals to save a little cash if you stop for a moment and look at these bargain items, you’ll probably notice, that most of the time the things are on sale to make room for the new shipment, so lucky you:))

 3. Your identity is more secure when using cash

Who would ever want their personal information hijacked? Not I! Well, using cash will decrease the likelihood of your identity falling into the wrong hands and being misused. There are too many variables involved when using a credit card: from wandering eyes, possibly losing it, to system failures. Can you think of one?

Just think, every time you swipe or enter your card information online is a potential risk of having your information snatched. Rest assure, cash purchases eliminate the chance of your identity being compromised. While using your card at any time increases the likelihood of Id theft. So go ahead, try a cash-only diet

BONUS!  4. A positive spending routine is developed when using cash

 When opting to use a cash-only system, you might find your finances get a bit less complicated because the cash you are carrying is for specific categories you’ve listed out. So, no more minimum or premium purchases, or finding an ATM in your network, or else facing the dreaded withdrawal fees. Yes, these fees might seem small initially, but they do add up!

You now know your budget and are more inclined to stick to the plan when you begin running low on the cash you’ve set aside for the week or month. Who has found it challenging to give up the cash on hand than handing over a credit card? Anyone? Well, I sure have. This is probably because no one likes to see their hard-earned money disappear from their fingertips. If you’ve found yourself stuck in credit card debt, use cash only; this might help establish better spending habits and save some money. Better spending habits mean you will be better equipped to pay off debt lightning fast! Because you have taken back control.

Committing solely to cash spending makes you think twice when making purchases. You know the money you’ve set aside is to last for the remainder of the time frame you have set. So, you are more like to evaluate the potential purchase and categorize it under needs or wants.

If you still find it challenging to stick to your budget, consider evaluating which areas of the budget you find most challenging to stay on task.

For instance, is it your clothes budget? Perhaps you’re dining out budget? Then, this is where priorities come in. You might need to take a minute and do some soul searching (not sole:).

So, now that you’ve taken that minute to think, prioritize, and weigh all options, is going over budget more important than the goals you’ve set for yourself? Once you have made the decision, changing your spending habits can have its rewards. You are now moving towards molting away old spending habits and welcoming financial security!

So what are you waiting on? Start your journey toward A positive spending routine.

>