Money Talk Matters

Interestingly enough I was thinking about writing a post on cash versus credit when I was asked this very thing on twitter last week. Therefore, I know “ears and eyes” are waiting on this response.

Everyone in some capacity knows about the “wrath” of Credit. There comes a point when every consumer must ask themselves which is better for me right now – Cash or Credit? Let me say right now, that regardless of what the economy is doing, cash should be the first choice. Cash because when you make a purchase – you own it. There is no interest, no chance at make a late payment and incurring other debt.

Cash says that you have established your ground rules for your household. That regardless you will stay within your boundaries and not incur debt.

When you Buy on CREDIT below is what begins to happen:

1) The message is sent saying I am going to have that job to pay this bill in the future. Hmmm is this true or false?

2) The door to financial stress in the household is now open. Let me explain even more. Debt does not generally occur overnight. All the small charges add up over time and become unmanageable when we use one or more credit cards. That is when financial stress and strain creep in.

3) Whether single or married, personalities change when unmanageable credit card debt has crept in. You allow your emotions dictate your life. This leads to spur of the moment decisions without considering the long-term consequences. Incidentally the person on the other end who you are directing your emotions at either get hurt or disgusted. This causes distance.

When you CHOOSE to purchase by cash, it has benefits such as:

1) If you purchase your groceries by cash, you will more than likely look compare what is on sale with what you normally buy. This way you can see which is the bigger bargain and if the sale item is really a sale. Result: You might find that you spend less and have extra money left over. This money can be applied towards something else.

2) Purchasing by cash causes you to budget your money accordingly and not impulse buy. Using cash should keep you from purchasing large ticket items that are a Want versus a Need.

3) If you are married, this can remove financial stress because now you have extra money. Every little bit adds up. You can put it towards a bill or a joint financial goal.

Which will you choose today?