by Victoria Jeffrey

Created on: March 27, 2009   Last Updated: March 28, 2009

These days when society seems to be headed inevitably towards a cashless society, people who choose to only use cash are seen as odd; others assume such people are criminals. Still, other people sniff at this, assuming that the cash only crowd is poor and can't help but use cash, or they just think that something is wrong with them. Not so. Many people, if not most who use only cash for their spending do so becasue it's what they prefer. They know something the rest don't; it's a very good way to manage where your money is going and how you are spending it.

Most Americans do not track their spending properly and this is why so many of us are deep in debt. When you swipe a credit card it's often been said that it's a painless transaction. You don't see your money disappearing and many don't see plastic as real money so it's very easy to overspend when using credit cards. Most Americans do overspend when they choose to use plastic and are very good at fooling themselves into thinking that they aren't overspending. Debt problems in this country are at an all time high. So the question we need to ask is: Does becoming a cashless society help the average citizen or does it help credit cards companies and banks? Think about it. Using credit cards can be a mindless action, and it often is. We need to put some restraints on how we spend. Using only cash is the best way to do that. When cash is used, it feels more painful to see that money slip away as you hand it over for payment. It seems more real than a plastic card and people often don't really want to part with it. Once it's gone from your wallet or purse that feeling of loss can have a direct effect on how you start viewing money.

Most Americans are in dire need of money management education. There are too many driving around in expensive cars they can't afford, living in houses they can't afford and living far beyond their means in other ways. Switching to a cash only existence can help you reign in your spending and can prevent you from giving all your money away to someone else as soon as you get it. When I talk about living a cash only life I'm not saying that it's necessary to get rid of all of your credit cards, although if you have major problems with credit card debt getting rid of all credit cards may be a wise idea. In most cases I would say that it is wise to keep one credit card; the one with the lowest interest rate, if possible. This can be used to make purchases for emergencies, book hotels or car

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