What’s in your wallet? Cash?

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I had to smile as I read an article in the business section of our local paper. The title said it all and right away I knew that I needed to share it. Last month I posted about another article dealing with the same topic, so maybe there really is something to it. With all of the credit problems we have been reading/hearing about, I hope that people are finally beginning to understand the trouble that comes with buying things on credit when you can’t afford it. The answer? Use cash.

Using cash and only buying things if you can pay for it is something that we not only teach, but it is something we actually do in our family. Each month we decide how we will spend every dollar and some of that includes planned cash purchases. We have found that by using cash we have more freedom and we also are more aware of where our money goes. One of the major keys to winning in the area of personal finance is to spend less than you make, and using cash is a great way to enforce that principle. The feeling you get when you lay down cash for a purchase is something that really takes getting used to if you have been a member of the “plastic” society for a long time.

By the way, the title of the article from our local paper is “More customers pay with greenbacks“, written by AP writer Anne D’Innocenzio.