skip to Main Content

Why You Should Pay in Cash?

One of the most obvious choices we make every day is whether to pay in cash or by credit card? It looks simple but it affects you monetarily in a big way. Many people consider it a personal choice but it is not. Some people like to pay by credit card as it looks good and they do not have to carry cash with them all the time. These may sound valid points to you but in reality the choice of cash or credit is a big one and can be a deciding factor for your future endeavors in terms of finance.

 

Reasons to pay in cash

One of the many reasons why people pay through credit is because they do not have to worry about giving the money at the time. This is just a temporary solution to your need at the time and should be used occasionally. If you use this mode regularly for paying and to borrow money then all the debt would pile up and you would not be able to pay in back. So, whenever paying at any place prefer to pay in cash then to thrust your credit card in the machine. It would save you from many problems later on.

Benefits of not using credit card

Secondly, people use credit cards because they think they can take out as much money as they can without having the fear to pay it immediately. They think that they can have the money right now and pay it on installments later on. This can be fatal for your credit history because when you borrow money continuously and fail to pay for it then things start getting worst. This has a negative impact on your credit history and you would not be able to enjoy some of the benefits by the bank in the future. So, prefer to pay cash then to use your credit card in financial dealings.

Where can you start?

All in all, there are a few places where you should use cash. This would cut your small transactions done by credit card and as a result would lessen the burden on it. If you are trying to stay on a budget then stop using the cards. Use cash instead to control the amount you spend. Use cash in grocery stores and do not buy any unnecessary thing which you might not need. If you keep your credit card at a minimum use and maximize the use of cash in the way mentioned here you would not only be able to stop yourself from spending extra but you would also be able to save some cash.

Author:

Finance Expert, Writer, Entrepreneur

Tammy Richards is a passionate finance expert who is also a writer and business owner. With over 10 years of experience as a finance expert, Tammy wants... read more

Like it? Share it!