Oops, I didn’t realize that this didn’t go out this week as planned. I was wondering why there were no new comments. 🙂
If you’ve ever gone through the Dave Ramsey plan or been advised by someone from several generations past (or even been keeping current with Suze Orman recently), you’ve probably heard that “Cash is King” and the benefits of living entirely on a cash system tooted. (This does include checking accounts, checkbooks and debit cards – as technically it’s still your “cash” on hand. What it doesn’t include is credit of any kind.)
But have you done? Have you thought about it (or is this the first time you’re hearing it)? Have you been tempted to just “buck the norm” and do it? Or do you think this is all crazy talk?
I have to admit that I often wonder if I (and my family) could live entirely on cash. We’re not highly dependent on credit (not including the mounting student loans that my husband is acquiring with his multiple post graduate degrees). We loathe the idea of a car loan. And we only buy what we know we have money for even if we’re using credit (meaning we’ve never held a balance on a credit card we’ve owned to date).
So why do we still use credit and why are we hesitant to use cash and debit cards only. For one, the rewards. Of course, everything is changing right now so this benefit might not be as alluring as it used to be, but my husband and I both get cash back from our cards and it’s a nice “bonus” every once in a while. The other reason is the extra security you get from a credit card. If a purchase is bogus or sometimes even if the purchase just isn’t up to your standards, the credit card company will stand on your side for a refund (or in the case of unapproved transactions, will reverse the charges). I’ve heard (but I could be wrong) that with debit cards, the money essentially comes straight out of your account and once it’s “gone”, it’s gone.
So, if you’ve gone to Cash Only, how did you do it and why? And would you recommend a frugal family like ours (who doesn’t really use credit like “credit” anyways) to go Cash Only too? Inquiring minds want to know.