There’s something about cash that credit can touch. For starters, the reason is that gives you the edge. Probably you do not know what that means, but it’s just a place to start. The other reasons are real and are needed to create the cause and effect for you to have the “edge”. Not the edge for the sake of saying that you will have it, but because it exists.
As much as credit involves technology and someone else managing your money, you will have to choose your death. But you are not here to take about credit, you are here to tackle the topic of going to the traditional cash-only method.
So, let’s dive in.
It’s easier to count
Credit is nice if you are good with numbers. If you are a large corporation and have hired some accountants to do the work for you, then you can head in that direction. The only issue is that you have to be very meticulous with the numbers. You have to know your way around the “book”. That sounds like a lot of work before setting any foot in further details. The other part is that it is very possible to have money in theory. Your account can read that you have money but what kind? If you have money in liabilities, then you are paper-rich and cashless. That’s the reality.
All this mumbo jumbo makes it hard for you to trace the amount of cash you have and the kind of risk in your hands. With cash, you can escape all this nonsense. All you need is a mixed bill counter, and you are ready to go.
Accrued interest
Credit cards are great, but they do have a limitation when it comes to the long term. In the short term, you can have that item or piece of clothing you’ve always wanted. But there’s one undeniable fact about credit cards, there’s no such thing as nothing for something. You have to pay the cost. The cost, in this case, is that you will have to clear your credit balance within a certain time frame – that depends on the agreement with the credit corporation. Any kind of delayed response means that you will pay more than the agreed interest.
In the long-term, this means that you will have to pay more than you did during the current time of purchase. In short, the simple act of compounding will act against you and not for you. Your debt or loan interest will continue to increase the more you delay the payment.
Easier to stick to a budget
When we talk about budget, we think that the rich are crazy people. Bunch of loaded people living below their means. But crazy isn’t crazy at all. If you think about it, budgeting is a lot more similar to sticking to a particularly nutritious diet or cutting the loads of information that you are exposing yourself to. Crazy right? When it comes to sticking to a budget, having cash is easier than having credit.
No transaction fees
When you are using cash, there is no sending money through any form of technology. This means that you get your money without severing the cost for transfer or when you need to change it from one form to another. However, to manage your cash efficiently, you might need a mixed bill counter machine that will help you in processing your cash flow.