Pay in Cash

"I'll tell you how to save money. Don't spend it!" - S.W. Laye

There are a number of reasons why it's better to pay with cash. There are arguments against carrying wads of bills around as well. I understand that, but this week I want to look at the cash advantage.

The first good thing about using cash is that there is a limit to what you can spend. Once the cash is gone you won't buy things you don't need. You can't! But isn't the ability to buy whatever you want a good thing? Not when you end up paying for it for the rest of your life. With high limit credit cards one can rack up thousands of dollars in debt and not feel a thing.

Using cash is psychological as much as practical. You are more attached to real money. Merely swiping a card doesn't hurt as badly as letting go of hard-earned greenbacks. You will control what is being spent because once it's gone it's gone.

*Another perk to paying with cash is that many places offer a cash discount. There is a gas station not far from where I live that has cheaper gas than most already. You will notice some gas pumps have a "cash price." This particular station posts the credit price and when you pay with cash the gas is about 5 cents per gallon cheaper. Last week we saved $50 on a carpet cleaning by asking for a cash discount!

Savings Tip of the Day: Consolidate your errands into one trip. By not running out and back multiple times you'll save gas and save money. The Green folks ought to like this one too!