Credit card or cash? How do you pay your bills? Which form of payment is your favorite one and why?
The battle between physical currency and a piece of plastic is already a continuous process. There are sharp disputes between cash-lovers and card–lovers over the one question only. Which form of payment does truly offer the most out of it? And does using a credit card mean saving more?
Let’s find out.
Cash vs Credit Card
All of us understand that paying with a credit card is a matter of convenience first of all. But how much does convenience cost?
Obviously, when you shop it is easier to reach for the plastic rather than a bunch of papers. And trying to use cash for all purchases is almost impossible for a person who goes to a grocery store once a week to fill the refrigerator for the next 7 days. But using cash helps to control your budget and the amount you need for the daily expenses. It also gives people a sense of security against hackers and cyber criminals. But this doesn’t mean your cash can’t be stolen too. The one really good and obvious advantage of having cash instead of a credit card is that you can’t spend more than you have. Swiping a card brings a feeling of freedom and the absence of any budget limitations when the reality is quite different. And this is a fact rather than a myth. Remind yourself paying for a bunch of new clothes in the department store via cash and a credit card. Using cash always gives a feeling of spending much more money than you actually do.
But there is a lot of downsides cash money have when it comes to future benefits, you can have just by owning a certain amount of money. As using a credit card always pays you back. How? It is a powerful thing if used properly. And it has some benefits you can lose when using just cash.
- You can accumulate rewards on your credit card on big sale days like Black Friday to save your money later;
- One of the situations when having a credit card is definitely better than having just cash money is when you have an unexpected purchase or any other kind of expense. So, you don’t have the money until your next salary. If you don’t want to wait, you can use your credit card with a certain credit limit on it to get that purchase or service and pay for it later. You just get an instant loan via your card.
So, which is better – cash or card? There is no one correct answer to this question. But having a balance and a healthy mix of both credit cards and physical currency is the best policy you can choose for your family budget.