The Case for Cashby Mary Ann Romans | More from this Blogger 04 Jul 2007 11:18 AM Hardly any of us ever use cash anymore. But if you are frugal, the way you pay just might make a difference in how much you spend. I realized, the other day, how I never seem to pay with cash when I pulled out the credit card to pay for an item that cost less than $2. It seemed sort of silly to me, the fact that I didn't have a single dollar bill in my...well, billfold. There is a strong case for using cash instead of credit or debit cards when you want to be frugal. Here are some reasons that cash can save money. Paying by cash can really help you stick with a budget. Just take out a set amount of cash once a week and use only that for your purchases. You save money because: (1) If you run out of cash for the week, well then you can't make any more purchases. You simply won't have the money to do it. You can budget for certain stores, too. For example, only take $5, $10 or $20 with you on your next trip to the thrift store, Walmart, McDonald's, etc. It will force you to make better buying choices. Pick an amount that seems less than you normally might spend. (2) Paying with cash and counting out the bills allows you to physically see what you are spending. You might think twice about buying a $6 latte if you have to actually hand over the money for it. Try it a couple of times. It is amazing how the psychology here works in your frugal favor. Paying by cash can really help you save more because: (1) You save on the costly interest fees from a credit card. (2) You save on the danger of overdrawn fees because you never use a debit card or a check. You know exactly how much money you have and never have to guess if there is any more available. How do you pay for purchases? Mary Ann Romans also writes for the Computing Blog here at Families.com where she shares everything from the latest news on technology to cool downloads and fun websites. Related Articles: Save Money Now! Living Frugally in 10 Minutes or Less Learn more about Mary Ann Romans  Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat. Relevantfrugal tags User Comments jonesx6 (1606) 09 Jul 2007 06:12 AMMary Ann, I have to admit I never have cash! lol I always use my check card. It really does make sense to take out a set amount of cash each week but I am not discplined enough. Ah well. lol Laura  Mary Ann Romans (26886) 09 Jul 2007 10:25 AMYou might find that it really makes a difference because paying for things just isn;t as easy to do. Community Tags cash, frugal, spending, saving, Tips Discuss this article
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