Pay Cash For Everything (Here Are 7 Great Reasons Why) | Wildchildretire

Key Takeaways:

• When you pay for cash for everything, it means two things: use actual paper notes or a credit card, then pay it in full ASAP.
• Living a cash-only lifestyle will help you save more, invest more, and stress less.
• If you want to live a cash-only life successfully, create a budget and stick to it, live below your means, and avoid impulse purchases.

Debating if you should pay cash for everything or not?

Let us help you make the decision.

Here we’ll show you 7 great reasons why you should live a cash-only lifestyle.

Within the last 15 years, the majority of my time, I have been living a cash-only lifestyle, and I can directly credit it to helping me save enough while I served in the USAF to become a military millionaire.

So if you are interested in seeing how using only cash can help you save more, retire earlier, stress less, and more…

Check out the helpful read below!

What Does It Mean To Pay Cash For Everything?

So it’s not exactly as it sounds. This means there are two ways to look at it. 

Paying cash for everything could mean using physical dollars to make every purchase. Now, this could be a great way to stick to a budget. You would have to withdraw a certain amount of cash at the beginning of the week or month and only spend what you have on hand. This would help prevent you from spending more than you can afford.

Paying cash for everything could also mean using a credit card and paying it off in full every month. This would allow you to rack up rewards points, which could be used for cash back or travel. And you wouldn’t have to carry around a lot of cash. This could be a great way to pay for everything if you’re paying off your credit card balance in full every month.

7 Awesome Benefits of Living A Cash-Only Lifestyle

1. Less Debt

Did you know that the average American debt per adult is over $96,000? And that’s not including any additional interest! On top of that, a surprising 77% percent of American homes have some form of outstanding debt. If you’re part of the 23% of households who don’t have any debt, congratulations! You’re ahead of the game.

If you’re not debt-free, there’s a sound chance credit cards are to blame. In 2022 the average credit card debt per household is $6569. Yikes!

Paying for everything in cash is a great way to avoid credit card debt. When you use cash, you’re much more aware of your spending. Also, it’s harder to impulse purchase when you have to hand over $100 bills instead of just swiping a card.

Plus, credit card companies often charge hidden fees, like annual fees, late payment fees, and foreign transaction fees. But, of course, you don’t have to worry about any of these fees when you use cash.

2. Bigger Savings

Using credit cards makes it easy to spend more money than you have. This can lead to credit card debt, which we already talked about. But even if you’re careful about not overspending, credit card companies often have minimum purchase amounts.

For example, let’s say you only have $5 in your bank account, but you need to buy a $4 item at the store. Unfortunately, you’ll be charged a $35 overdraft fee if you use a credit card. Ouch!

You never have to worry about credit card fees when you use cash. And, since you’re spending less, you’ll have more money to save.

3. Improved Budgeting and Mindfulness

When you use cash, you’re much more aware of your spending. Likewise, it’s easier to stay on budget with an app when you can physically see how much money you have.

On the other hand, credit and debit cards make spending easy without thinking. It’s easy to swipe a card and not consider the consequences until later. This can lead to overspending and credit card debt.

4. More Investment Opportunities

When you have credit card debt, your money is tied up in interest payments. This means you have less money to invest, which can set you back financially in the long run.

Paying cash means you have more money to invest in real estate or stocks with Betterment. For example, if you invest $10,000 at 7% interest, you’ll earn $700 in one year. But if you have a 20% interest rate credit card debt, you’ll pay $2,000 in one year.

5. Financial Independence

While you’re paying off debt, it can feel like you’ll never be truly financially independent. But when you’re debt-free, you have more control over your finances.

Paying cash means you’re not beholden to anyone but yourself. You don’t have to worry about making minimum payments or paying interest. This gives you the freedom to do what you want with your money.

6. Early Retirement

And now that you are financially independent, you can focus on other goals, like retirement. You can save more money and retire early without worrying about debt.

For example, let’s say you want to retire at age 55 with $1 million using the 4% rule. If you’re paying 20% interest on a credit card debt of $5,000, you’ll need to save $12,000 annually! But debt-free, you wouldn’t have to save anything extra.

7. Less Stress

Last but probably most importantly, less stress. Money is one of the leading causes of stress in America. In fact, a whopping 90% of Americans say that money is a major source of stress in their lives. So it makes sense that paying for everything in cash would help reduce stress.

When you use cash, you are more mindful of your spending. You are more likely to think twice before making a purchase. This can help you save money and reduce stress.

Plus, you don’t have to worry about paying interest on credit card debt when you pay with cash. So that’s one less thing to stress about!

Overall, living a cash-only lifestyle has many benefits. It can help you save money, stick to a budget, and reduce stress. So if you’re looking for a way to improve your financial situation, paying with cash may be the answer.

How To Live A Cash-Only Lifestyle

Want to know how to live a cash-only lifestyle? Do the following:

Get Rid of Your Credit Cards (Or Pay Them Off In Full ASAP)

You must get rid of your credit cards to live a cash-only lifestyle. Credit cards can be tempting to use and quickly put you in debt. Of course, if you pay your credit cards off in full at the end of the month, you can keep them and use them as needed. But if you find that you’re spending more than you can afford, it would be a good idea to get rid of them.

Create A Budget and Stick To It

If you want to be successful with using only cash, you must be aware of your spending. First, track where you’re spending your money and ensure you’re not overspending in any area. Then, once you understand your spending, create a budget and stick to it.

Use Cash For All Of Your Purchases

This may seem like a no-brainer, but using cash for purchases is essential. Of course, this means that you’ll need to have money on hand to pay for all of your purchases. Frequent the ATM regularly so you will always have money on hand.

Avoid Impulse Purchases

And then there were impulse purchases. If you see something you want, take a step back and wait a few days before buying it. Ask yourself if you need it and if you can afford it. If not, then don’t buy it.

Live Below Your Means

Finally, you have to be pistols drawn with your spending at dawn and ensure that your outgoings are always lower than what’s coming in. It can be challenging to do this, but sticking to a budget and ensuring you’re not overspending is essential.

Living a cash-only lifestyle can be a great way to save money and get out of debt. So if you’re tired of being in debt or looking to save money, follow these tips and switch to paying things in full. You’ll be glad you did!

FAQ

Is it better to pay cash for everything?

There are pros and cons to the cash diet. On the one hand, it’s a logical choice because it can help improve your spending habits, savings account or checking account balance, avoid that pesky annual fee, or avoid any other additional charges. But on the other hand, some might have a hard time making cash-only purchases, and they may miss out on getting a better credit score, travel points, and credit card rewards, especially with online shopping.

Why should you pay cash for everything?

There are several reasons why you might want to pay cash for everything. Perhaps you’re trying to save money, or maybe you’re trying to stick to a budget. Also, suppose you went full-in on a cash lifestyle. In that case, there are plenty of benefits, such as: lowering your risk of identity theft, fine-tuning your grocery budget, and avoiding mortgage loans, personal loans, and car loans.

Can you pay cash for large purchases?

Yes, you can pay cold hard cash for large purchases. However, you may need to save up for a while to have enough money.

What are some things you can pay for in cash?

Some things you can pay for in cash include items at a grocery store, rent, utility bills, gas, and occasionally a large purchase such as a car. You can also use some money to buy secondhand items, such as furniture or clothes.

Why do people prefer cash?

Some people like the cash-only system because it is more convenient than using a credit or debit card. Also, some folks like not having to worry about any extra due date or extra fee, exposing credit card information, competitive interest rates, miss reading the fine print, interest fees, or just having a card payment.

Summary

Now that you know the benefits of paying cash for everything, go and save money! You avoid all those pesky fees when you pay with cash and get bigger savings. You’re also in control of your finances and don’t have to rely on anyone else. Plus, when you don’t have any debt, you stress less and enjoy life more. Ready to start saving? Go ahead and try out these tips for yourself!

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Will you pay cash for everything now that you know the benefits? Please share your thoughts with us!