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Ten Reasons You Should Live on Cash

January 15th, 2009

how-to-make-quick-cash.jpgMost individuals and families have a stack of credit and debit cards which accumulate debt and become difficult to navigate at the end of the month for those living paycheck to paycheck. Living on credit cards allows card holders to have instant access to funds and live beyond their means. A simple and uncomplicated lifestyle can be obtained by simply learning to live on cash. Here are ten reasons that you should make the transition and begin to live on cash:



1. Buy for less. In some cases, making purchases with cash can actually save you money compared to what you would pay when financing through credit. For example, when purchasing an automobile it is usually possible to negotiate a lower price for the car if you can demonstrate to the seller that you can pay the full amount in cash up front.

2. Save on credit card fees. Late fees, interest fees, and balance transfer fees can all be avoided when you choose to live on cash. Credit card fees account for billions of dollars in revenue for the credit card companies. It is not necessary to continue contributing to their profits.

3. You can use the Internet to pay bills and other fixed expenses. This can save on transaction fees and allow consumers to save money as they do not have access to seemingly unlimited funds.

4. At the beginning of a fixed period of time (this can be a week, a month, or whatever is most feasible for you), allocate the amount of cash that will be required for the discretionary expenses. This will quell overspending as the concrete evidence of how much money remains is right in front of you.

5. Living on cash makes a restaurant bill finally seem high. Imagine the money that is allocated for food each week. One or two restaurant bills and your food budget may have become depleted. Living on cash is a great way to save money on eating out. Cooking at home together can bring members of the household closer together and assist in creating a healthy lifestyle.

6. Get out of debt! Living on cash will allow you to create an aggressive debt repayment plan which will include up to thirty percent of your income. Doubling the recommended amount which should be allocated towards debt repayment becomes possible with careful budgeting and living on cash for all of your daily and variable expenses.

7. Living on cash gives you peace of mind. You will be able to remain calm knowing that all of your immediate bills are being taken care of and you still have sufficient funds left over to purchase food for the remainder of the week.

8. The evidence is right in front of you. Never has there been a better way to stop overspending and learn to live within your means. Cash allows you to recognize where exactly your means are. Depending on how much cash you have available, you can learn to eliminate which unnecessary luxuries exist within your lifestyle.

9. Living on cash forces you to become creative. There are many creative ways to entertain yourself that don’t cost a lot of money. Free activities within the community or even spending an evening at home can seem welcoming when you think about the money that it is freeing up within your budget.

10. Living on cash allows you to learn to save. When you live on cash you don’t have the security of the debit or credit card for large purchases. Living on cash means that you must assume responsibility and save for these items in the future – no more buy now, pay later!


One Response to “Ten Reasons You Should Live on Cash”

  1. comment number 1 by: MareeTee

    I like your article on “Ten Reasons….” I can relate to it because of my spending through credit cards. When bills accumulate, it is difficult to pay.

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