Is it worth following a cash-only lifestyle for financial freedom?
The ongoing trend will never tell you to switch to a cash-only lifestyle. Cashless living means you are fully dependent on debit or credit cards and have the liberty to pay for everything using them. This could be one of the reasons why you are struggling with debt.
This is because when you pay with these cards, a virtual transaction happens. It does not let you feel that money is getting deducted from your bank account. This feeling can be dangerous as it may encourage you to spend extra.
The best way to deal with this problem is by keeping a tab on all the transactions. If this is not possible on your part, you better be ready to welcome debt problems. In this situation, you might have to borrow money to meet the pending dues and this cycle never ends.
If you are smart enough, you will consider taking out personal instalment loans. They allow you to borrow money but on slightly flexible terms and conditions. When borrowing becomes inevitable for you, it is a good idea to choose an option that prevents further complications.
You might not have to go through all these if you ditch these cards and rely on cash. Find out how a cash-only lifestyle can help or hurt your finances by reading through this blog.
Embrace the pros and cons of a cash-only lifestyle
While starting out, restricting yourself to cash to sponsor various expenses might seem impossible. You must be patient to follow an effective financial strategy to be able to pursue this lifestyle. Maybe, you have to make some difficult decisions which you will not repent in the long run.
Simply creating a budget will not help until remain honest about it. Follow it religiously and do not forget to put the remaining amount of money in a savings account. Motivate yourself by reminding yourself how this approach can relieve you from the burden of credit card debts.
You just have to stop unnecessary spending and nothing else. Understand the pros and cons in detail so that you do not have to look for guaranteed loans during any emergency because your savings should be enough to cover it.
Why must you give the cash-only lifestyle a try?
You will definitely need some solid motivation to take a difficult route to achieve something big. These are nothing but the advantages that you can enjoy throughout this journey. This particular way of living has some perks to offer and you must know them in order to get started with it right now.
- Budgeting is easy with cash – Maybe, you have grown up seeing your parents create a monthly budget once getting the salary. Since those were the days when credit or debit cards were not so popular, you watch them dealing in cash. This thing remains ingrown in your mind and for this reason, you can implement it right away. Besides, with cash, you know exactly how much you have to spend for the whole month. This might not be easy when you have virtual money.
- Eliminate expenses smoothly – With cash, you have a fair idea about your financial limitations. This restricts you from going overboard and spending money. Moreover, you have to allocate the earned money for different purposes. This hardly leaves any scope for splurging as savings for emergencies will be another priority for you.
- Access to credit is not available – Unlike credit cards, with cash, you do not have the power to sponsor any expenses. Since you will be cut short of the limitless cash facility, you lose the ability to fulfil whatever purpose. This even downsizes the urge to grab anything without any specific purpose.
- No worry about fees – The meaning of accessing a credit card is that you must agree to pay fees charged by the card issuer. This thing does not happen when you are managing your life with cash. You will be using the money that you earn and save. For this reason, you do not have to pay charges the way you have to do in the case of credit cards.
- Savings become mandatory – When you opt for a cash-only lifestyle, the necessity for savings will always remain at the back of your mind. Moreover, stashing money on a regular basis is one of the core steps of budgeting. With time, you get into the habit of saving and continue doing the same.
- Stability in finances – When you carry out expenses with cash, this holds you back from expending money on any payout. You just focus on the necessary concerns. This way, you can keep debts at bay as no payment will remain outstanding any more.
Why must you think twice before accepting a cash-only lifestyle?
Seeing the benefits of taking up this way of living, you can easily get ready for the change. Hold on! It might not be as easy as it might seem because of the roadblocks that will pop up in your way. These are the setbacks that you must accept in order to go ahead with this lifestyle.
- Misplacing cash can be dangerous – With online money, you are free from the fear of losing hard cash once taking it out freshly from the ATM. Besides, to make a big payment, carrying a huge amount of cash can be inconvenient. If in case it gets stolen, all your money will be lost. You cannot raise a request and get it back.
- Online payment is out of the question – A cash-only lifestyle can let you take pleasure in online purchases. This is because most of the e-commerce sites prefer receiving online payments. They are less likely to offer cash-on-delivery options. There can be many things that are only available online. Thus, you have to let them go of your life if you do not maintain virtual access to cash.
- No additional benefits on shopping – Credit cards let you enjoy a variety of offers when you book a flight or shop for something. These additional benefits will be beyond your reach.
The bottom line
A cash only lifestyle cannot be continued for long but for the time being, it is a good idea to get a grip on your finances. Implement it whenever needed.
Ailsa Adam is the Editor-in-Chief and former content head at Hugeloanlender. She has been a valuable member of the content strategy team since 2017 due to her abundant experience in the finance sector. Passionate about helping individuals navigate the world of loans and personal finance, she has dedicated herself to acquiring extensive knowledge on various financial products. Before her role at Hugeloanlender,
Ailsa worked as a seasoned journalist and writer, specialising in creating informative blogs and articles on diverse loan types. She is known for her meticulous research and commitment to delivering accurate and engaging content. She holds a degree in MBA Finance and has a keen interest in creative writing and art.