Paying with cash may seem a little old-fashioned these days. With credits cards available to almost everyone who needs one, you may be wondering why bother with cash, when credit cards are easier. In reality, cash has benefits for many purchases. See our 3 reasons why you should pay with cash and keep your budget on track!
- You can easily keep track of your spending
Budgeting becomes very easy when you pay with cash. You can simply withdraw the amount you need for an average week and use it for all your purchases. Not only does this provide a visual reminder of how much you have left to spend for the rest of the week, but it also helps you set a weekly budget goal.
- You won’t spend money you don’t have
If you pay for most of your purchases in cash, it means you won’t go into debt like you could with a credit card. You can only spend the money that you have available in your account. This may help you reach your financial goals in the long run, by preventing interest rate payments from accumulating and expensive credit debt.
- You can’t make impulse purchases
If you keep your credit cards at home, you won’t be able to make an impulse buy that can throw your budget out of whack. Instead of purchasing the item on the spot, you’ll be forced to go home, look at your budget and ponder whether the expense is worth it. If you still decide this is an item you need to buy, factor it into your next month’s budget!