Articles and books on personal finance can store up tips as possible in an attempt to at least some of them. This approach may convince the reader of them, except for emergencies and to pay less than they bring, but in some cases, you can say a lot without explaining anything.
In this article we want only a technique to improve your finances - Cash only. Here's how to make purchases in cash, it can only help the budget, save and invest.
A plastic --Paradise
Contemplating with a rapid increase in the use of plastic in hard currency, some people, the old-fashioned cash. To be honest, the plastic is much sexier than a piece of colored paper, with a president looking out into the great late on it. Some banks also can customize the color and graphics on your credit cards and debit cards.
Debit and credit cards also offer the advantage of safety. They can, you need a signature and / or a PIN number to access your money.Cash payment is only through its ability to defend if someone wants to take you protected.
Except for the odd country store, plastic is accepted, and as many places as cash. But more money is almost always the best choice for your purchase. Here's why:
Overpaying
One of the disadvantages of credit cards and debit cards is that you should spend more than you mean by easy access to more capital. With the cash required, spending more than you intend to goto a bank or ATM, then complete the store to order. This is the time to reconsider whether your budget can handle the extra load.
Apply only to win the more they are willing to spend for a given product can prevent the purchase of and payment for functions that do not need. This works for small objects, but to buy a boat or a truck requires more money than you can comfortably carry you away. If a control can not be used, a debit card is better than a loan Paper, because you only have money to spend already.
Over-Shopping
The cards will not only pay too much for the purchase of individual, but also invite you to buy the items more than you think. Build store display for their products so attractive, you buy more. In some cases, a check list to avoid impulse is insufficiet.
People tend to spend more with credit cards than with cash. One study found that people spend up to 18% more if with>credit cards, and McDonald's notes that average purchases rose from $4.50 to $7 when customers used plastic over cash.
Only carrying enough cash to buy the things on your list is the best way to shop within your budget. If you take the time, you can find sales or inexpensive alternatives to your regular brands to make your cash go further.
Cash Vs. Credit
For the purpose of this article, cash means money you have already earned. Using your Visa for a cash advance not solve the problem of using high-interest debt to cover costs.
Cash has a clear advantage over credit cards: If you are a balance on the card or not only run the minimum monthly payment, interest at a rate of 15% or more to purchase. This means that a payment of $ 15 or more willing to pay € 100, for. If you save enough money to buy the same thing, getting the equivalent of 15% discount from your card surrendered.
Cash Vs Debit
If wecash only represented as a better alternative to credit cards, few would argue against us. In contrast, debit cards enjoy a protected status, even though the use of ATMs.
Debit card can also trivialize purchases. As a square of plastic, it is difficult to say how much money was spent with the debit card. There is a problem here is $ 2, $ 6 and so on, until you spend to give up, tracking as you. This is a shock when the monthly statement comes. You can cash, you can monitor the fundshow much to spend.
Conclusion
With a credit card or debit card offers more security than cash in most cases. For larger purchases, cash is often not possible and the issuance of a check or bank transfer may be more problems than it's worth it. In addition, a debit card can be used correctly, a good alternative to cash.
A credit card can also be a useful tool, but only a fair substitute for cash when the balance is paid in full at the end of each month.Otherwise, the premium for the convenience of credit card debt problem.
If you tend to overspend, shopping with money is a way to fit your budget and limit impulse buying.
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