Financial Zip

Always have Cash in Your Pocket

You’re in line at the grocery store, or maybe you are at a movie. The new Iron Man movie coming out in 2 weeks, what ever it is your next up in line you pull your wallet out and you hand over your… credit card. Aaaagh! This is not good. Right now in our world plastic is king. There is a lot of consumer debt out there. So we are a very likely to just hand over that piece of plastic, because it is so easy. Then we begin rationalizing I will pay it off at the end of the month. The end of the month comes I’ll just make the minimum payment and payoff the balance next month. At this point you have begun downward spiral into big time debt.

If you want to avoid this situation do a little pre-planning and start using cash. Yes those old antiquated pieces of paper to purchase your stuff. It has been shown that if you use a credit card to purchase things you tend to spend 30% more than with just cash. Then if you add the interest on top of that well you begin to see the picture. It cost less to use cash and you won’t spend as much.

Money Doesn’t Grow on Tree’s

I really wish this were true because I would plant one right in my backyard. Unfortunately in our world they don’t exist. So where does that leave us. It leaves us having to buy something not when we want it with credit cards, but to do it the old fashioned way save it. I know, I know it seems a little old fashioned, but if you can stave off your desire for that new stereo just a few more months till you have the money it will save you a lot of money and you don’t walk out of the store with the payment option hanging precariously over your head.