The Benefits and Short-falls of Living a Cash-Only lifestyle

More and more people are cutting up their credit cards and living a cash-only lifestyle either because of their own credit card debt or because they merely want the added freedom. I have lived using cash only for the past 4 years. I do use a debit card but only rarely. And in most cases a debit card can be used in lieu of a credit card. When I purchase items on the internet I use my debit card, when I need to buy a metro card, I use my debit card. There have been very few instances when my debit card was not accepted. I decided to give up credit cards when I researched how much money I was being charged in interest and how the New World Order was benefiting from our credit system. What are the benefits of living a cash-only lifestyle?


The Benefits of a Cash-Only lifestyle


No Interest: This is the most important reason to start living a cash-only life! I'm sure you've all heard that if you pay the minimum on your credit card you will end up paying an enormous amount of money on interest. If you owe $1,000 on a credit card and pay the minimum each month it will take you 18 years to pay off and you will have paid almost $2,000 over the original amount! For $2,000 it takes 30 years to pay off! Moreover, If you owe $10,000 dollars in credit card debt and pay only the minimum at a 17% interest rate you will pay $3,550 dollars in two years but your credit card debt will have only declined by TEN DOLLARS! And, according to creditcards.com most people in America owe more than $15,000 dollars in credit card debt!

No Temptation to Overspend: If you don't have enough money to buy something you simply don't buy it, there is no temptation to purchase an object if you are short of funds. If you really want it you will save up for it. Also..and this may be a little off-topic, but avoid going window shopping or watching T.V. All these things do is make you covet things that you don't need. It's much easier to keep control of your spending when you are not constantly bombarded with advertisements and subliminal messages to buy buy buy.

Privacy: Cash is untraceable! If you use a credit card your every purchase can be scrutinized and manipulated whether through print ads in your credit card bills or computer ads that just happen to appear next to your email account! Not only that but your whereabouts can be traced using your credit card.

Peace of Mind: I can't extoll this enough. It is a great feeling to have no bills coming in every month. It is a freedom that is priceless.


The Negative Aspects of living a Cash-Only Lifestyle


Difficult to rent a car and other things: There may be instances when you will have difficulty purchasing things just using cash. Renting a car or a moving van requires a credit card. In these instances you might have to borrow a relatives credit card. I'm sure there are other instances when a credit card is required but I haven't had any except the two mentioned above.

Must have another source of I.D.: I have run into instances when certain agencies wanted more identifying cards than my drivers license and a debit card. In all instances (so far) I have talked my way around it but this is a problem and might become an even greater problem in the future. If you have or can acquire another identity card with a picture on it that would be optimal.

Must have a stash of cash for emergencies: Credit cards are great for emergencies. If you do not wish to have a credit card you must save up and have a certain amount of money on hand in case of emergencies. I have not found this to be a problem, simply save up a certain amount of money and do not touch that money for any reason other than a dire emergency. Yes, it may take a bit of discipline but you will get used to it.

While there are negatives to the cash-only lifestyle the benefits far outweigh the negatives. Not only will you have greater control over your money but the New World Order will have less. And, yes it may be a little less convenient but what you lose in convenience you gain by not paying interest and not overspending. I hope that you will consider this lifestyle not only for your own personal welfare but also because the big banks that run the credit schemes in this country are benefiting from our use of the credit system.

Do You live a Cash Only Life?

  • Yes
  • No
  • No but I want to and am working towards it.
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Comments 62 comments

daskittlez69 profile image

daskittlez69 4 years ago from midwest

I cut up all of my credit cards after college. I also rarely have cash on hand. I use my debit card for everything. It is easily concealed and the record keeping of my finances is easily trackable online for my own personal use of my finances.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

The only thing about not having cash on hand and using your debit card for everything is that you risk losing your money when the banks fail. I keep very little money in the bank.


A Little TRUTH profile image

A Little TRUTH 4 years ago

Some good points here,Brie. Yes, to avoid paying credit card interest is to avoid helping to fund the NWO. You can go one step better though, if you have the discipline: Use credit cards but pay the full balance each month – no interest – free use of money. However, as you know, it’s not really money that you’re borrowing for free, but you get the satisfaction that you’re using a tiny fraction of your own credit that would have otherwise been used to fund the NWO.

Re your comment above, yes, the debit card can become useless when the banks fail, but also the cash can also become useless when the dollar crashes. It’s good to have a stash of silver and gold coins for that purpose. It seems that a link to your hub about bartering materials would be appropriate here.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Thanks "A Little Truth" you are quite right..I will put a link on.


Trish_M profile image

Trish_M 4 years ago from The English Midlands

Hi :)

Interesting!

I have debit cards and also joint credit cards with my husband.

I usually use the credit cards. They are very convenient and I don't fear being mugged for my cash. Indeed, I rarely carry much cash around.

However, we rarely pay interest. My husband is the main earner in our family and he pays off our monthly spend, each month, when the bill comes in.

I don't believe in over-spending on credit cards, but I do find them safe and convenient. I wouldn't be without mine :)


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Hi Trish, thanks for commenting. You do realize that you can be mugged whether you have the cash or not.


Trish_M profile image

Trish_M 4 years ago from The English Midlands

True, but they won't actually see any enticing money on me ~ or get any, if they try :)


Rochelle Frank profile image

Rochelle Frank 4 years ago from California Gold Country

I use credit cards and have for decades.

1. They are very handy and give you an itemized spending record.

2. They avoid the necessity of carrying a lot of cash and making change... especially when traveling.

I even have one that gives you points to redeem for merchandise, gift cards and cash.

[I did write a hub about credit card freeze-- putting it in a block of ice or a tub of marinara sauce-- for those who tend to impulse buy.]

I've never even thought of paying a minimum payment and always pay the full amount each month.

When the card company wanted to charge me an annual "service charge" I said I didn't want to do that because I knew there were other cards that did not have such a charge. They said "OK--no service charge."

I agree with your premise: that you should not use it if you can't pay it off all at once. I will not get myself into an interest-paying situation... even though they have raised my credit limit, for what I'm allowed to spend, to the sky.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

You, Rochelle, are better than most other Americans who have huge amounts of credit card debt.


Rochelle Frank profile image

Rochelle Frank 4 years ago from California Gold Country

Not better, it's just that I grew up knowing money in a tangible sense-- like coins and bills, that could be saved or spent.

My parents didn't believe in debt-- except for a home loan, and they were totally focused on getting that cleared away systematically, and as soon as possible.

Some people just don't realize that those numbers on the receipt represent real coins and currency.


kerlynb profile image

kerlynb 4 years ago from Philippines, Southeast Asia, Earth ^_^

Oh please wish me luck! I've been meaning to do this! I'm slashing my debt and I'm on my way to a credit-card-free life! Not that I'm going to throw my credit card away. I'll be keeping it in fact for identification purposes. But I'm not bringing it with me when I go out of the door. Neither will I allow my bills to be paid through it. I really think you're right. There is should be a great feeling to have when there is no credit card bills coming. Want to have that feeling in one month's time! Getting there! Voting your hub up and useful!


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Unfortunately, whether you behave properly with credit card debt or not you will be affected when this system collapses and collapse it will. It is unsustainable. Thanks for commenting Rochelle.

Good luck and thanks for voting it up kerlynb.


luciano63 profile image

luciano63 4 years ago from Paris

Hi, today it is a must to live our life counting on what we really have and not on what we can have because of credits...today's financial crisis shows that we all exaggerated during the last 20 years (Europe but also USA). I lived in USA in the late 80's for 6 years and as a student I had a credit card, when I went back to my country and started to work with a normal salary...I had to wait 2 years to pay off and close down that damn credit card! I realised then how I was living my life as a student thanks to a solid family on my back. however once I started to work I refused all sort of help and managed to restart on my own with my salary....Today I earn more money but I still keep an eye on the balance according to my salary...and several times I decide to renounce to spend money because it is not adviceble to do it.

Wishing you the best!


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Thanks for commenting "luciano63". I would go a step further and try to become even more self-sufficient but that's another article :)


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX

Brie - Hi ya! I live basically credit card free now but do have some active ones in case of emergencies. If I can't pay it off when the bill comes in it usually won't be put on the card.

The other thing is that many debit cards now can be used as either credit or debit so the car rental and airline ticket hurdles get lowered.

TFP


monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City

You have some great points here Brie. I do have a question. Are there any legitimate options for building credit if you are operating cash-only? I don't have credit card debt at all but I keep them for credit building purposes. I would definitely consider ditching them if there was another good option!


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

No, not that I know. I do tell people who are interested in that to take out small loans from the bank for a purchase that you already have the cash for, then pay it off in chunks of about 25% just to build credit. If you feel that you need it.


breakfastpop profile image

breakfastpop 4 years ago

It is the only sensible way to live. It may not beasy but it's sensible.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

I find it very easy actually, thanks for commenting "breakfastpop".


Kulsum Mehmood profile image

Kulsum Mehmood 4 years ago from Nagpur, India

Your calculations on how much we pay on interest on credit cards gave me a heart attack....pun intended. Actually I have recently started using my credit card and life is good.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

ummm ok.


ladylucas94 3 years ago

I like listenting to the Dave Ramsey show he believes in debt free living cutting up credit cards having a 6mos cash cushion. Paying for most things with cash!


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I agree with all of that.


A Little TRUTH profile image

A Little TRUTH 3 years ago

This idea of debt free living is all well and good as long as we keep in mind that (according to the DVD “Money as Debt” in the Amazon capsule above) it is not possible for a significant portion of society to pay off their debts because money IS debt. Yes, all money currently in circulation has been borrowed into existence. So even if we are living “debt free” we are still living on borrowed money, albeit someone else’s borrowed money.

You could take a look at those dollars in the picture above, or any that are in your pocket and say: “Some pour soul out there somewhere is paying interest on this dollar because he borrowed it into existence; and I’m very thankful to him because if not for him, this dollar would not exist - and I need it to buy food.”


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Better THEY are the fools than YOU!


cloverleaffarm profile image

cloverleaffarm 3 years ago from The Hamlet of Effingham

For the most part, I use cash for everything. Sadly, the way the world is, they want you to be in debt. Ah, but, you don't have to be, if you pay off the cards in full. I have several cards, but I don't use them unless I know I am going to have the money to pay it when the bill comes in. This allows me to build a good credit score. If you live a cash only system, chances are it will be very difficult for you to buy a car, or a home, or any other large item that you can't pay cash for. There will be no trace of you in the "system".


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

There are ways of getting around that. And, yes, it may be more difficult but in the long run I think you would be better for it. You don't have to play by their rules..but they would like you to think you do.


lucaslady94 profile image

lucaslady94 3 years ago

Hi brie Im back! going to save for that toaster! lol anyway keep the interesting topics coming !!!


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I just wrote one yesterday about Menopause, did you read it?


lucaslady94 profile image

lucaslady94 3 years ago

I'm going to since I'm going thru the changes! I need all the help I can get and the issue I have is stress eating ! Now that the holidays r upon us, I do most of the cooking ! More weight ugg!


Stina Caxe profile image

Stina Caxe 3 years ago from Virginia

I've been living credit card free for about ten years now. It definitely has it's drawbacks but it's a great feeling to know that other than my school loans I have no debt!


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I've been living this way for about 5 years and I will NEVER EVER go back..it is a wonderful feeling to be free! Thanks for commenting "Stina Caxe".


lucaslady94 profile image

lucaslady94 3 years ago

Nowadays using cash is becoming less convenient; I believe it's designed that way to pressure consumers to opt for credit/debit cards to take care of their daily transactions ! With the influx of pre-paid debit cards , overdraft protection, payday cash advances these are merely traps to keep the consumer in financial bondage. Credit cards are now charging 4% merchant fees on top of the purchase Also most zero interest credit cards come with hidden and yearly maintenance fees. Dave Ramsey financial advisor encourages debt free living where cash is king and the paid mortgage is the status symbol for the BMW. Howard Clark is a consumer advocate informing his audience of consumer fraud . Both encourage money management with cash and resources.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I've lived a cash only life for 5 years now, it hasn't been that hard and it makes me happy.


joym7 profile image

joym7 3 years ago from United States

Great tips... but it is not possible for me to live without credit card. you can't live if you are getting a limited cash as your income.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I don't see why not joym7??


Coffeeatdawn profile image

Coffeeatdawn 3 years ago from Philippines

I lead a cash-only life...primarily because I'm a mess with schedules. I listen to the rant of friends trying to cut down expenses but cannot resist temptations of making purchases via credit cards. I consider myself lucky :)


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

It really is a better, freer lifestyle..I'll NEVER go back.


joym7 profile image

joym7 3 years ago from United States

@Brie Hoffman ...because you can't limit your expectation and wishes and you must need money for them. And if you are getting only a limited cash then you can't fulfill them without any debt.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

You're thinking is muddy. You can limit them for a time..so that you can accomplish the goal of freedom. Moreover, by putting yourself in debt you put that goal of freedom off even more. You have to figure out how to accomplish what you want without debt..debt is a mirage, a lie. It only promises to give you what you want, it doesn't really give you want you want. And, in the end, you are enslaved to it.


foreignpress 3 years ago from Denver

I went cash only after a rough time of it a few years ago. In fact, I've cut back so severely that I'm living $2,000 below the level of poverty and still getting fat. I cook on a pocket camping stove and live nicely without food stamps nor any other welfare. Now I'm making plans to buy land and go off-grid. BTW, I was hoping you'd do something on Death Squads. Palin mentioned it in 2008, and now it's resurfacing as Obama's healthcare scam heats up.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

I haven't written much the past couple of months..the traffic has dropped so low here I just wasn't motivated...but we'll see if it picks up.


lucaslady94 profile image

lucaslady94 3 years ago

Comeback Brie we need you! I have fallen so bad into the credit card trap that it has ruined my finances. I have to choose between food or pay the credit card . Food comes first , so I suffer paying the overdraft/ over the limit and late payment fee. It's terrible when I tried so hard to avoid credit card usage at all cost. It seems I'll never get out of debt. It's a vicious cycle that never ends and I'm a slave to the lender. I only wished I had paid attention to the Proverbs regarding debt . I continue to borrow from Peter to pay Paul and its like those cash advance schemes that takes advantage of the "just getting by" folks. Always count the cost before you apply for credit!


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Is there anyway you can file for bankruptcy or if you do not own anything you could just not pay... Of course your credit will be ruined but it probably is already. Then..after that, never EVER use a credit card again. They are like quicksand and will just pull you down.


lucaslady94 profile image

lucaslady94 3 years ago

Hum a lot of my debt is school loan major dept. stores and credit card. My issues is financial infidelity! Yeah that's the dirty little secret behind all this. It's my fault that my family suffers. I'm to blame for credit card impulses purchases. All this behind my hubby's back ! He knows about it now, but the damage has been done and I feel like I'm cursed for good. I don't know what else to do and bankruptcy is out of the question as I'm accountable for all my debt I created a monster that tore nets me at night. I feel terrible.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Well, even though I know it's hard you have to come to the understanding that you are more than your debt. Yes you have to deal with it but don't let it bury you..it's just something you have to deal with..like anything in life. God doesn't care about your debt. The Bible even had the year of jubilee when all debts were canceled. And also you need to know that a lot of this is due to forces beyond our control. The Banks and the merchandisers use a lot of pressure to get you to spend and they also are the ones who jack up the interest rates to usurious amounts. A lot of it is tilted in their favor. So try to remove yourself emotionally from it, you are not your debt. YOU are much more valuable!


lucaslady94 profile image

lucaslady94 3 years ago

Thanks Brie I knew you had an answer I gotta take baby steps once again. It just frustrating when you can't pay those creditors and juggling what to pay makes it more of a mess month to month. I am so grateful and blessed to have a loving hubby who hasn't kicked me to the curb for my financial offenses.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

We all make mistakes..the key is to learn from them.


foreignpress 3 years ago from Denver

Lucaslady: It's none of my business, and excuse me for butting in, but I've been there and done that. I've paid off $40,000 of credit card debt and every dime I make now is money in my pocket. Brie's covered all the angles on the debt game so read her other hubs. Educate yourself, live cheap, don't feed the system, and stop buying. The formula does work.


lucaslady94 profile image

lucaslady94 3 years ago

Thanks foreignpress I just feel beaten down with this debt load and it's really got me twisted. I got a booklet on Downsizing its helping me to come to terms that we are not our stuff based on biblical principals. That's amazing how you got out of debt. I'm raising my 3yr granddaughter like starting over but she's a blessing but$$ too so it's not easy . I shop thrift stores and yard-sales to find the deals. My clothes aren't fancy but I like to dress Allison pretty at times. I could use all the encouragement because it helps me here.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Take a look at this site..this woman teaches how to feed your family for less than $100 a month: http://www.onehundreddollarsamonth.com/mondays-wit...


A Little TRUTH profile image

A Little TRUTH 3 years ago

lucaslady94, Brie has given lots of good suggestions in her comments and hub. Maybe you didn’t catch it but most debts are fraudulent anyway - especially credit card and student loan. You didn’t actually borrow money from someone who had it to loan, and who is now at a loss because you didn’t pay it. So don’t feel so bad if you can’t repay it. I was actually able to prove this in court and got my mortgage canceled - never repaid it.

The option to just not pay it is the one that intrigues me, and I've done it. If you choose this one you would have to know how to handle debt collectors. The statute of limitations on debt collection varies by State, but some are as little as 3 years. In any case, you may want to check out the book “Debt Cures They Don’t Want You to Know About” by Kevin Trudeau. You can read some of it free on Amazon.


lucaslady94 profile image

lucaslady94 3 years ago

I will Brie its been a rough month as my hubby is dog tired at his job and wants his own business. He has a Master's technician and can fix any diesel truck on 4 wheels he's so underpaid and under appreciated. He's a Turkish smart man like the guy that sells the Greek yogurt. He has been turned down for business loan but if he goes back east where the trucking business is big he can get own business. I will follow my hubby wherever he goes I go. I do not know what life is like there since I never been out of the states that far east. I'm willing to relocate if he decides to make a move for the better. I got my daycare license . I can do it.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Amen "A Little Truth" thanks for the input. I would be interested in how you fought your case in court.

Good luck to you "lucaslady94"


lucaslady94 profile image

lucaslady94 3 years ago

Ok I will check that out A Little Truth however my debts are ongoing month to month. I would say I owe $20 thousand all together. I'm court ordered and the other a school loan, so I can't weasel my way out. The others debts are credit card . I'm buried with debt and it seems like it will follow me to my grave. I am a debtor. Thanks Brie I have that suggestion saved on my bookmarks. I'm so grateful for all the concern and suggestions as they are helping me come out of my peter patter situation and face it head on. I must admit I love shopping that is my vice. I like looking at pretty things I know they are beyond my reach. I just get tired of looking so scruffy and feeling hopeless.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Lucaslady94, everything under the Sun will wear out and fade including you! You must set your sights on Jesus Christ and his kingdom and quit letting the material world distract you.


lucaslady94 profile image

lucaslady94 3 years ago

Yeah my big vice is handbags it started when my dad was looking for something in the closet and when he opened whola! my mom's handbags came tumbling down; I was hooked like a fish on a sinker. I love the brand names like DB and Coach. I must admit the higher end bags like LV and Prada are gorgeous but beyond my reach. This really is therapeutic and relieves my conscience. However getting out of debt is my priority, so I must learn to live like a pauper.

the latest purse.


A Little TRUTH profile image

A Little TRUTH 3 years ago

Brie, you can read about my court case in this hub: https://owlcation.com/social-sciences/Ive-been-Ser... Scroll down to the subheading “My Win Experience in Court”.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

Thanks


foreignpress 3 years ago from Denver

Again, barging in where I shouldn't. But I gave everything to God after stuff started piling up. I said, "God, I've had it. I'm giving this to you. Help me out of this mess." Well, I felt better and things got better -- almost immediately. I even beat the IRS at its own game over a six figure dispute. Create a plan that involves God and hardships will go away.


hazelbrown profile image

hazelbrown 2 years ago from Central PA

I don't use a credit card, but I do use a debit card. Technically it's just cash from my checking account but... it's way easier to overspend! I might try giving cash-only a try once again... good ideas!!


Brie Hoffman profile image

Brie Hoffman 2 years ago from Manhattan Author

It's really a great life style, not getting bills in the mail is the best.

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