The Case For Paying With Cash

The nature of using credit products means exposing yourself to a certain level of spending temptation. We're all human, so let's face it, we've all made poor decisions with our credit cards. But what do you do if the ability to spend poses too much of a temptation for you to handle? It might sound a little outdated, but the best way to prevent yourself from abusing your credit card is to leave it at home and only pay with cash. Here’s our argument for why paying with cash is the way to go.

It can curb your spending

When we talk about using cash, we're not talking about withdrawing from your line of credit or using your credit card's cash advance feature. You should be using money that's already in your checking account. The point is to prevent yourself from borrowing money.

Carrying cash instead of credit can be a powerful habit to curb your spending. It forces you to live within your means. The thing about cash is, you have far less of it on hand than credit. If you’re out shopping and you want to purchase something, you can only spend as much as you physically have. As such, it helps you avoid overspending.

It helps you budget

Spending with cash also enables you to be able to budget for every shopping trip. You know exactly how much you have to spend and when it's gone, it's gone. It's not completely foolproof as you can always make a quick stop at an ATM. use this method when you shop for groceries or when you're looking for new clothes. You can even bring cash with you when you go out to eat with friends.

The beautiful thing about using cash instead of credit is that you don't owe anything afterward. You can start to focus any extra cash towards the debts you already currently have.

Is it for you?

Cash isn't ideal for every situation, of course. Booking travel tickets or making large purchases are typically better suited for credit. But using cash for day-to-day shopping is a great way to develop healthy spending and budgeting habits.

So, if you’re struggling to get your credit spending under control, perhaps carrying cash and leaving your cards at home is the best solution. Why not give it a try?

What are your thoughts? Do you think you could manage on just cash? Let us know in the comments!