It is no wonder that more and more people are finding themselves caught in a web of debt. Cash has become a four letter word with many retailers and service providers not willing or able to accept dollars and cents in payment for their goods and services. It does not matter whether the purchase is a small or a large one. Even your local caffeine traders prefer to see you wave a bit of plastic in payment for a latte, rather than look for change to a $50 note.
Those of us who are older understand the value of a dollar. However how can one keep their spending in check when all you need to do is wave a card over a reader and you have parted with some of your hard earned money. Temptation is everywhere. While control on spending is more difficult it is not impossible.
Is cash on the way out?
Our government has been complaining for some time about the lack of available dollars at their disposal to do all the things that they need to in order to provide medical, education, defence health and a vast range of other government funded services and programs. One solution to this problem is to try to eliminate the “black economy”. That means get rid of cash and everyone will need to disclose to the gevernment all their income and pay the appropriate taxes. Removal of cash is certainly on its way. It may not be here just yet – but ultimately it is just a matter of time. Therefore not being able to use cash should no be an excuse to financial mismanagement.
Harder to budget and track spending
In a society that encourages us to live on credit and borrow from tomorrow to pay for today, one needs to be especially diligent not to fall into the trap of using all the funds placed at our disposal by the credit provider, without thinking of how and when we will be able to repay these.
However that which appears to be impossible, simply takes a little more effort and attention, before it too becomes secong nature.
Reconcile income to expenses
Reconciling expenditure to both income and a set budget is very important in ensuring that expenses do not blow out of control. To this end it does not matter if you use credit or debit cards to cover your living expenses. However if you know that you have $300 a week to spend on food, do make sure that you are not spending $400 instead and simply allowing your credit card debt to grow by $100 every week.
Cash and large purchases
Fortunately you can still use cash to negotiate a better price on your large purchases. Anything from televisions, washing machines, or items of furniture can yield a better discount if you offer to pay for these in cash.