Paper Money – Cash

Why Care About Paper Money?

This is not a thesis on the topic of “paper money”. The focus is directed on more practical down-to-earth concerns.

The focus of this is two-fold:

1. Pay For Consumable Items In Full
2. How To Pay Using “Cash”

Pay For Consumable Items In Full

Generally, you should pay for things as you buy them. Do not rack up or accumulate debt.

Yes, there is the convenience of using plastic. That is undeniable, and that will be addressed shortly. For now, it is important to think in terms of paying for things as you buy them.

Before credit cards became so widespread, people carried paper money – i.e. cash. They would pay cash for what they needed and that’s a good practice.

To give some examples to make this clear, first consider a trip to the fast food restaurant for any meal. It doesn’t matter if it is breakfast, lunch or dinner.

Let’s say you don’t have any paper money on you so you use a credit card.

When you pay for those meals with a credit card, yes it is convenient, but if you keep a large balance you are paying for things that you have long used up. The benefit is long gone yet you are still paying for it.

It would be better to pay in cash. You are done with it forever. You got your meal and it was paid for in full. You have no debt coming back to haunt you.

Here is another example. Let’s consider gasoline for your vehicle. You pay for it with a credit card.

You know where this is headed. If you keep doing that, and never pay the credit card balance off each month, you will have a huge debt for gasoline you have used long ago. Not a good position to be in.

So the recommendation is this: Always pay for consumable items in full because they are consumed immediately.

How To Pay Using “Cash”

With the advent of Debit Cards, you have the convenience of using a plastic card to make purchases.

It is like paying cash using paper money so you are paying in full.

And of course, if you prefer to carry and use currency, you have that option.

The point is that you can pay for things you buy in full in cash and avoid the debt trap.

Elimination of debt is part of a sound financial strategy where the application of Income Science comes into play. To learn more Click Here

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