Use Cash | 365 DAYS OF MONEY TIPS | DAY 13

words of wisdom

IT’S NOT HOW MUCH MONEY YOU MAKE, BUT HOW MUCH MONEY YOU KEEP, HOW HARD IT WORKS FOR YOU, AND HOW MANY GENERATIONS YOU KEEP IT FOR.
– ROBERT KIYOSAKI

WHY IT IS IMPORTANT: Using cash helps you be more accountable. There is something to be said about having cash on hand or pulling out your money clip and paying with paper or metal. Cash brings awareness to your budget. When you say this is the cash limit; when the $20 is gone. There is no overdraft protection or cushion for anything else. Cash makes money relevant and present vs. credit and or debit cards.

KEY POINT(S): Using cash allows you to be aware of your spending and is more likely going to keep you within your budget. Using cash ensures that you do not owe anyone for your expenses.

MY EXPERIENCE: Before college, all I knew was cash. When I got my first credit card and bank account back in the early 2000s. I ended up using my credit or debit card for everything and soon found myself wondering where the money was going. I found that when I used cash not only was I more likely to stay within the limits of my budget, but I was more likely to be successful in saving. Now, when I go out with friends, I pull out cash to help managing overspending.

QUESTIONS FOR YOU: Do you find yourself blowing your budget with cash or plastic? Can you think back on a time where using Cash benefited you more than pulling out your credit or debit card?

NEXT STEPS: 

1. Determine if using cash can assist your budget health.
2. Use cash and limit your need to repay anyone.
3. Consider a Financial Coach at Eduential™.

SUGGESTED ONLINE REFERENCES: 

• Paying with Cash Can Help You Lose Weight and Save Money by KATHLEEN ELKINS
• The Advantages & Disadvantages of Using Cash vs. Credit by MICHELLE MILEY