The Discipline of Paying Cash

There is a lot to be said about the old fashioned method of shelling out cash to make a purchase. The reasons for this are simple. Statistics indicate that a normal American home owes on average $15,000 in credit card debt. By paying only with what you have on hand, you automatically curtail your spending and thus save money.

The first thing to do if you want to start living a cash only lifestyle is to weigh the situation. Once you have a handle on the state of affairs, the transition to a debt-free life can begin. Listed below are some of the advantages of a plastic-free existence: 


Money Management Skills are Enhanced
Not much thought is put on what you are purchasing when you use credit cards. It is tempting to make a purchase when something attractive meets your eye. But when you use cash only, you are able to manage money to the last penny. With nothing to fall back on, you are forced to keep some money on reserve in case of an emergency.

Wants are Curtailed
Needs are a lot different from wants. With credit cards, it is easy to toss your wants in your shopping cart and let the card cover it for you. But with cash, things are not so simple. With limited cash on hand, you end up buying only the stuff you need. And no, the lovely red pumps or the new entertainment system you see in the store window are definitely not a need.

Savings May Be Leveraged for Big Buys
When you are planning to make a big purchase, you have to let your savings build up. Typically, as time passes, desire wanes. In all probability, by the time you have collected enough money to make a purchase, your desire has faded and you no longer want to make the purchase. However, if you do decide to still make the purchase, you can use the money saved and not incur new debt.

Using Your Imagination Can Be Fun
With no conveniences for credit or limited resources, you can use your creativity to think up fun ways to live your life without spending beyond your means. Family vacations, presents, and birthdays can be fun events if you use your imagination but not necessarily all your hard earned cash. What you would have paid an exorbitant amount for if you had a credit card is now a reasonable sum, something that is well within your budget.

The Financial Horizon Looks Brighter
With no credit card debt making your head swim, the world suddenly looks like a wonderful place to live in. You don’t have to worry about mountains of bills and can put up your feet and relax. Once you are a disciplined cash only spender, money is not your enemy anymore but a dear friend that is there when you need it.