Over the last five years we have always mentioned how we write out our monthly budget, and set our categories aside for spending with CASH in each envelope.
It was NOT always like that ~ 10 years ago, our mail was full of bills, loans and payments ~ we lacked the discipline to write out a budget and stick to it. And it showed, because it was the LITTLE things that caused us to spend TOO much on things that we truly did not need.
I think in reality… many people rely on payments — so they truly CAN afford anything. Am I right?!
And that is the truth: You CAN have anything you want – in reality, all of us can. You can have Trips, Cars, Jewelry, NEW Clothes, a HUGE Flat Screen Television – even a NEW Boat, ATV … or even a Camper. As long as you are willing to make payments. Right?!
If you are willing to finance your WANTS and make payments you truly CAN have almost anything you want – without waiting. But I’m almost certain that is not what everyone wants, or is it?
When I look around I see SO many people SWIMMING in household debt ~ it truly has swollen to an enormous amount ~ we finance college, which takes us years to pay off. We finance cars, because we get easily bored with the vehicles we have… we encounter medical expenses, unemployment and emergencies, and with little or no emergency fund, the need to finance seems appealing because it still allows us to get by… yet still get what we really want (and may not want to wait for…)
One of the ways to get serious about your financial lifestyle is by making that decision to STOP the cycle… one way to do that is to pay cash. Paying cash can be painful – but it’s a true game-changer if you want to get ahead financially.
Paying in Cash is Painful…
Paying for your items in cash really is a game-changer – I’m convinced that it DOES help you stick with a budget better than ANY other method. Considering 40% of Americans have less than $500 in their savings, we can only assume that many do not have the discipline to put even small amounts of money away ~ which leads me to say that those same people would not have the discipline to use a credit card as their method for staying within a budget.
Here are THREE results of paying in cash versus plastic…
Paying in cash makes you consider the purchase
No matter if that item is BIG or SMALL, the buying experience is completely different. You have NO CHOICE to consider what you may pay on a monthly – it’s what you are paying as a whole.
Paying in Cash Forces you Evaluate your Purchases
When you are sitting at a car dealership, that big ticket item seems to lose it’s appeal when the price tag of $20 – $30,000 comes into the conversation. Especially when you are spending cash. For many, financing is their option – but that’s also an option that may NOT help you spend less.. factoring in depreciation and interest, your 6 year old paid off vehicle MAY now sound like a more attractive option. Right?!
Paying in Cash Keeps you OUT of Debt
When you spend your hard earned green, you’ll stay out of debt in the first place. Learn how to set money aside; learn how to be content with the things you have. Make do with what you have instead of making decisions based on your emotions. It’s a GREAT feeling when you are debt free & don’t have to rely on ANYONE else.
Our culture has definitely twisted the meaning of affordability – so many people think that being able to “afford” something means that they can cover the monthly payment.. provided they don’t lose their job or have an emergency.
When in reality, the term “affordability” should mean your ability to pay cash, without putting yourself in a pickle financially.