Cash Hurts!

- Plus some good news for those credit-card avoiders…

Hey, do you have a dollar? Relax, I don’t need it. I want you to take one out if you have it. Now take it, hold it in the air above your head and let it fall on your head. Did it hurt? Probably not. Now consider the following: the next time you walk into Best Buy, Wal-Mart, or Target for that next “big” purchase: that digital camera or book you’ve been looking for, take cash. Not your credit card or even your debit card; cash. Chances are, if you’re as normal as everyone else, there will be some reluctance to do so? Why? Isn’t it the same money? Of course! But cash hurts my friends.

When you actually spend cash on a purchase rather than a card, there is a psychological attachment to it. It registers more than say the new MasterCard “Tap and Go” Cards that are hitting the market now. The idea is that as more consumers are becoming aware of the dangers and traps of the credit card industry, the creditors losing their grip and need to re-establish themselves—and what better way to do this than by (a) getting your head off the purchase or (b) coming up with the great idea of using a credit card to help you save money? (these are way too good to make up). See here. In growing numbers, Americans are leaving the credit-card mafia in the dust and the creditors have to get more creative—asking consumers to “Skip a payment.” Bah.

However, some of you choose to use the credit card anyway, and that’s your choice. Responsible use of it can help, but do be aware that sometimes things happen and having that card can be a liability. But consider some of the benefits of using cash:

- Deals! Have you ever walked into a retail store, saw some shoes or apparel at the list (retail) price, and tried to ask for a cheaper price by paying with cash? You’d be surprised at how many businesses will discount things if you have cash (instead of a card).

-Instant Awareness. No need to track your bank spending; you know exactly how much you take out. Today many debit cards will do the same, but credit cards don’t deduct from your checking account until—well, until you say so.

Now, to be fair, there are times where it is unreasonable to carry cash—for instance, while traveling for leisure (or on business not involving your company card), you should probably carry a debit card. Most debit cards are just as safe and secure as credit cards. You do of course run the risk of overspending. I know this guy who did this all the time. OK, yeah it was me. But if I can learn, so can most.