CASH IS KING: WHY YOU SHOULD USE CASH OVER DEBIT AND CREDIT CARDS
It’s no secret that cash is king.
When you use cash, you are spending money that you already have. This helps you stay on budget and prevents you from overspending. Debit cards also help you stay on budget, but when using debit cards, they can be easily overdrawn if you’re not closely monitoring your bank account. Credit cards can be dangerous if you do not closely monitor your purchases. High-interest debt can rack up so easily and take forever to pay off if you cannot pay the balance off monthly. This can put a strain on the family budget. Money issues are one of the biggest common problems that take place in marriage.
It’s no secret that using cash is the best way to stick to a budget. In this blog post, I’ll discuss some of the benefits of using cash over debit and credit cards.
What are the benefits of using cash because cash is king?
One of the benefits of using cash is that it’s a physical representation of your money. This can be helpful when you’re trying to stay on budget because you can see how much money you have left. You can only spend what you have. When it’s gone, it’s gone.
Are there any downfalls to using cash?
There are some disadvantages to using cash, such as the fact that it can be stolen more easily than a debit or credit card. Also, when you are traveling and need to reserve a hotel or a car rental, having a debit or credit card is usually required. However, overall, using cash is the best way to stay on budget to keep from overspending on your family budget.
How can using cash help me stay on budget?
When you use cash, you can physically see how much money you have left, which makes it easier to stay within your budget. I like Dave Ramsey’s idea about using the envelope system. Every two weeks when my husband gets paid, he pulls out our tithes, offerings, food, and gas. We pay a tenth of what he has made for the 2 weeks pay period on our tithes and we have set amounts for each of the other envelopes. This keeps the money from getting spent in our bank accounts and helps us to have a budgeted amount for these items.
What are some of the dangers of using credit cards?
Some dangers of using credit cards are that it can be easy to overspend, and you may end up with a lot of debt. It’s important to be aware of the dangers of using credit cards before you start
using them. It can be easy to rack up a large balance on your credit card before you realize it.
What are some of the dangers of using debit cards?
Even though using your debit card is safer than using credit, debit cards can cause you to get off your budget. This is because when you use a debit card, it’s easy to swipe your card and not know how much money you have in the bank for each area you have in your budget. If you have a budget for $200 for groceries, buy using your debit card it’s very easy to go over that budget. If
you have $200 in a cash envelope. You can’t spend what you don’t have. This method takes a little bit more effort but, in the end, it’s worth it to stay on budget.
How can you avoid overspending when using a credit or debit card?
In today’s world, it’s easy to pull that plastic debit or credit card out of your purse and go on a shopping spree. This can lead you to spend more from your bank account than you attend to. When using your credit card, if you have a credit balance on your account, the sky is the limit on spending. To avoid this, try to only use your card for planned purchases. For example, if you know you need to buy groceries, only use your debit card for that purchase.
For example, if you know you need to buy groceries, only use your debit card for that purchase. This will help you stay within your budget and keep you from struggling to pay another bill because you just spent part of that bill money on groceries. If you are using a credit card, only use it for the item that is planned for.
That way you can consider how much money you will need to pay off when the bill is due or how long it will take you to pay off that purchase if you are running a monthly balance. Thinking of it that way will make you rethink your purchase.
How do I use cash effectively?
There are many categories you can use cash for. One category is food. You can use cash to buy groceries and to eat out. Another category is gas. You can use cash to fill up your tank or to pay for public transportation.
Also, you can use cash for entertainment. We just took our family to the fair, if you save and plan ahead of time, using cash is a terrific way to keep from going over budget in that category.
I hope to do a more in-depth blog post on my envelope systems using cash and bank accounts.
In this digital world, it is so easy to get in trouble with our finances. I know, I am speaking from experience.
However, I hope this post gave you an understanding of how easy it is to get a debit card or even worse a credit card and overspend on your weekly or monthly budget.
Debit cards are better, but we just don’t know when we are spending on something else, that we are going to need money for.
Credit cards can get us into costly debt with high-interest rates if we aren’t able to pay them off when the bill comes due next week.
Thank you for subscribing and reading our blog. We hope that you found this post Cash is King: helpful in your journey to staying on budget using cash.
Please share with your friends and family and be sure to check back often for more tips and tricks on how to save money. Until next time!
https://www.ramseysolutions.com/debt/cash-vs-credit-card
Proverbs 22:7 – The rich ruleth over the poor, and the borrower is servant to the lender
Subscribe to receive your free family planner
