Some quick pros and cons of using cash
Some people love cash. Well, most people love cash. But those who carry cash usually have some good reasons for it. For some, using cash over plastic is an easy way to budget. You have what you have and when it’s gone, the spending stops. There may be some pros and cons you haven’t thought about when it comes to carrying cash. Here’s a look at a few of those.
Pro: Your spending becomes a lot more real
If you’re using a credit card all the time, you can find yourself swiping without much thought. Try using cash more often and I guarantee you’ll be paying closer attention to how much you’re spending on that foot-long hoagie. Personally, I’ve started using cash for my meal purchases, and it’s made a huge difference on my spending. For me it’s turned a lot of those drive-through meals into trips to the grocery store, and that can save you big bucks.
Con: When it’s gone, it’s gone.
Ever been robbed? Well I hope not, but if you have, you were probably more concerned about the cash that was in your wallet, and less about the plastic. You can always cancel a credit card, but you can’t cancel cash.
Pro: It keeps marketing out of your face
I love Amazon. I’ve talked about it quite a bit. I’ve warned you how it can make your spending get out of control, but it can also save you quite a bit of money on the things you frequently buy. One downside however, is that not long after you look at a product online, you’ll see ads for the product popping up everywhere you look on the internet. It’s a great advantage for the online retailers, but it’s very tempting for you when you’re trying your hardest not to spend. Cash solves that problem. You can’t shop online with cash; therefore, you’re not being tempted while you ride down the information super-highway.
Con: Cash doesn’t help your credit score
Being a good steward of your credit cards is a great way to build that credit score. If you’re not using them frequently, you won’t be building up that number. There are other ways to improve your credit score, but this is definitely something to be mindful of.