by Brian Lamacraft

Created on: March 05, 2009

We live in a society now that is based on credit. Anyone can go out and buy what they want if they have a credit or debit card. Many people get themselves into financial trouble when they use these cards to make purchases. Paying for things with cash is a better financial decision for several reasons.

Increased Security

Criminals are stealing credit card and debit card numbers in increasing numbers. You can protect yourself by using cash to pay for your day to day expenses like groceries or eating out. When I buy groceries I always pay with cash. This is safer in my opinion then using a debit or credit card and I am less likely to overspend.

Proper Budgeting

Using cash for expenses helps you maintain your budget. When you pay for something with cash you are using money you actually have instead of putting the expense on credit and having to pay it back at a later date when you may or may not have the money for it. When you go shopping put some cash in your wallet and leave the credit cards and debit cards at home. Resist the temptation to get a stores debit or credit card and just pay for the items in cash. If you don't have the cash on hand, don't buy the item.

Increased Savings

Paying for things with cash helps to increase your savings. You will have less bills you need to pay, no credit card fees or interest payments. You will be less likely to overspend and put extra purchases on a credit card if you just pay with cash.

Paying More then You Should

You won't be bringing thousands of dollars in cash with you in your pocket to make a large purchase such as a piece of furniture. What you can do is save up the money first before you decide on the item you need. Use your credit card and pay for the item in full and then go to your bank or use online banking to pay for the expense right away and clear it off of your credit card or just debit the amount using your debit card at the time of purchase. Just make sure your account has enough money to cover the entire expense. This way you are not making payments and spending more on the item then you have to. Don't fall for schemes such as buy and pay later. Purchase the item in full at the time of sale. This way you don't have to worry about bills and interest payments and late fees.

Relying Less On Credit

When you pay in cash you are relying less on credit and are not trapped into the endless cycle of debt. With credit cards it is very easy to go into debt. When you use cash to pay for your items in full you avoid all the problems associated with credit cards. Credit should be something you use as a last resort, or in an emergency.

Start using cash more often to pay for your expenses. Don't purchase more then you can afford. When you use your debit card make sure you have enough in the bank to cover your bill and pay off any credit card balances immediately. Using cash and limited use of credit and debit cards will steer you towards more financial freedom.

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