We’re so used to the convenience of whipping out our plastic to pay for a latte or sandwich. With credit cards so widely accepted and so easy to use, what’s the incentive to actually carry cash? Cash doesn’t net us airline reward points, does it?
Yes and no.
There are no reward points associated with it (that’s for sure), but there are other, greater incentives to using cash.
- Tracking. By giving yourself a weekly allowance, you can keep much better track of how much you’re spending, and even start to—gasp!—stay in budget. When you use cash, you are circumventing potential debt.
- Bargains. You might be surprised at the bargains you can get when you use cash at the farmers market, used furniture stores, and many other types of transactions where it’s just between you and the person selling their thing. Cash is simply easier for them to deal with.
- No Fees. Not to mention that credit or debit cards often carry an immediate fee, especially when buying things like gas. You can avoid the fee by using cash.
- Cash is quicker. Transactions go faster, and there’s no paperwork to keep track of.
- Cash costs less. According to Associatedcontent.com, “A report by Dunn and Bradstreet indicates when patrons use a credit card versus cash they spend approximately 18% more for each transaction.”
- No ID theft. Cash doesn’t put you at risk for identity theft.
And, at the very least, cash has the psychological benefit of making you feel responsible for your spending. This is the first step to getting your finances on track.
The credit card companies don’t want you to know it, and they make plenty of commercials convincing you otherwise, but cash is the most powerful tool you have in your wallet. Maybe Cash is King!