Four Reasons To Use Cash

by James on August 20, 2013 · 2 comments

cash1) Paying with cash means you get better terms.  If you go to buy something and if the seller sees that you have cash they are often more inclined to offer a lower price because it means they are more likely to get paid.  Instead if you get something on credit on an installment loan, sellers are a little less motivated, they’ll get their money later.  This is key for larger purchases like cars or houses.   

2) Debt is stressful.  If you’re racking up a lot of credit card debt, you’re likely going to have it get in the way of your living a fuller, happier life.  You to have to fork over a ton of your cash, time and mental energy to deal with the debt.

3) Cash empowers your decision making.  When you’ve got cash in the bank you don’t worry about what debt plan you qualify for or whether you can get approved or if a credit check will hurt your credit score.  You’re also better covered in the event of an emergency or in the event you want to take advantage of an investing opportunity.  So you’re free to take more risks if you’ve got cash socked away.  Basically your decision making is easier if you are using cash.  Essentially cash means you can focus on what’s really important.

4) Cash gives you options.  Cash buyers generally have more saved up.  This means they have more choices.  For example, if you have $25,000 socked away and had a child, you’d be able to pay for childcare rather than either you or your partner needing to say home to parent.  Also, if you have a pile saved up, you don’t have to take a lot of crap from people.   If you are in a job you don’t like or a town you don’t like, you can leave.  

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