Many, many year ago before credit cards were invented people paid for everything with cash or a barter system. I know for most of us it’s hard to imagine not being able to conveniently whip out the plastic at the grocery store, gas station, movies and even fast food restaurants.
For some of us this still remains true. My dad still only carries cash to pay for many common things such as those mentioned above. Even the president of the company where I am employed told me he still only uses cash for most common purchases. I have gotten so used to using a credit card to pay for things it’s hard to imagine life without them.
What would life be without credit cards? So many timesÂ I have heard that you can save so much money by using a cash only system. It hurts so much more to pay for something with cash than with a credit card. I’m still not completely convinced this is true for me, but recently I have thought about something that does temp to to test the cash only system.
Let’s assume I went to the grocery store and only took $80 cash to pay for my groceries. I left my wallet at home with my credit cards hidden away to prevent any possible usage. I would think twice about buying those Twinkies for $2, after all that’s 2.5% of my weekly grocery budget! On the other hand if I had a credit card I basically have a $10,000 + limit so buying something unnecessary would be much easier. So using an all cash system in this case would definitely help save money.
Another great example of where I could see an all cash system being successful in our life is with the eating out budget. Sometimes we spend over $400 per month eating out. I know we could easily make it on $200 and put an additional $200 per month in our savings account. If we only brought $20Â cashÂ with us for dinner it would be much easier to skip dessert or the appetizer that we don’t really need anyway.
I think an all cash system could definitely save our family money. However, because we have used the “pay your credit card off every month” system for so long I think it will be very difficult to get used to destroying our credit cards. Maybe I will have to create a happy medium to ween ourselves off our addiction!