Anyone who reads these blogs will know how much I hate credit cards. I hate them more than I hate lukewarm coffee and rude customers, which is saying something. And I don’t believe people when they tell me credit cards can save you money. Here’s why my cash saves me money.
I Spend Less
Even though I understand the nature of delayed pain/ instant gratification and what it is doing to my neurons, I have no ability to withstand its allure if I have plastic in my hand. Should I be armed solely with cash, however, I have no such feeling. The only way to stop myself from spending extra money on things I don’t need is to take away my ability to spend such money. It may not work for everyone- but cash is tangible. You can feel that you earned those dollars, and that makes me a whole lot less willing to part with them.
Once It’s Gone, It’s Gone
Cash leaves you with no chance to live beyond your means. It’s actually impossible, as once your means are gone, you have no way of replacing them until your next pay day. Not only does this mean you spend less by necessity (starvation and a darkened room being your only friends for the last couple of days in your pay month), you are also more likely to budget carefully and maintain your living expenses once that has happened. I find myself much more careful if I put my savings in a separate account and then take out the rest in cash- if I can see my living expenses in front of me, I’m much less likely to overspend thoughtlessly. Cash also means you have to save for items and can’t buy them straight away. For me, that ensures that I really am committed to the purchase if it’s taken me a couple of weeks to get the cash for it. It also gives you enough time to do your research properly and find the best deal.
You Save On Goods
Cash gives you a bargaining chip. Retailers love cash-it’s their bread and butter. And it doesn’t have any fees attached to it. Shopping somewhere like The Good Guys, you can make massive savings if you pay for it all in cash. Just ask your retailer if they can give you a discount should you pay in cash. If they say no, find someone who will. Negotiating is a must for good consumers, and cash might give you the chips you need.
Save On Interest
The only interest attached to cash is the good kind. If you pay upfront, with cash, that’s it. The item is yours. There’s no long-term affect on your finances, and no need to factor in the costs with your initial purchase. This is the case for everything, from a blender through to a car. While it might seem to be unnecessary to spend all that time setting aside money for the upfront costs, you’ll find you save significant amounts. And there’s no such things as late fees or overdrawing costs if you live in a cash world, which will save you money again.