Which is the Best Option Cash or Credit

Disclaimer

Here on Selfmadesns.com I’m only giving you my life experiences. So, you may learn and benefit from my mistakes along the way. As well as learn from all of the good decisions I made. What may work for me in some different experiences is not always what you should be doing on your own. Always do your own research or speak with a professional on the subject. Better yet do both guys. It will be way more beneficial for you at the end of the day. If you want more information on our terms, please visit our terms and conditions page along with the privacy policy page as well.

The Talk

When I was in high school, maybe 9th grade, or 10th grade, my day had a talk with me. He said son you know why I don’t have a car note I have to pay every month? I said no. He said because he doesn’t like dealing in debt. He went on to explain to me that if he had a car note, the car it’s really his. That the car dealership could come get it anytime if he falls be hide on his payments. So, in his head he just renting to own. The fact that he doesn’t know what tomorrow will bring makes him uneasy about not owning. He went on to tell me about the benefits of owning the car. He said if he ever lost his job and was unable to make the payment, he could still have his car to move around. Even if he couldn’t afford rent, he could live out his car for the time being. He wanted me to understand that ownership is important. But he also knew how important credit was as well.

Credit

He went on to tell me while ownership is important being reliable is just as important. Thats when credit comes into play. He said credit is like evidence of you being a man of your word. You tell someone you going to be there by noon you should show you by noon. So, when you go out there and get a loan form a bank. You have to give them your word you gone pay it back. But they won’t take your word for it, that’s not got enough for them. They rely on your credit score to see if they can trust you to keep your word. Throughout life people will want to deal with you based on the evidence of you being a man of your word. After we had this talk, it really made me look at my future different. I wanted ownership while being a man of my word. So, in today’s post I’m going to give you some examples of when to use cash or credit.

Cash Examples

Buying small things

So anytime you’re out and about and come across something small you want. I know a small purchase can be different for everyone. But I’m going to try and keep all these examples relatable for everyone. Say you out with friends and you guys are bar hopping. You’re starting to get hungry because you smell something amazing in the air. So, you follow your nose, and it led you to the end of the block. Where a man is selling for out of a food truck. And he is selling $3.50 walking tacos. It’s probably best you just give him the five-dollar bill and let him keep the rest as a tip. You might get a little by doing so.

Dealing In Debt

If you know you are someone who easily overspends or is easily tempted to overspend, it’s probably better for you to use cash. Just imagine you’re in a shoe store and they have the last pair of shoes you really want in your size too. But you’re on a budget. These shoes are not in your budget, but you have credit! that would only put you further in debt making your budget way to tight. But you do it anyway because you can justify it in your head. Now what if in that same situation you don’t have credit and only cash. Because of your budget you’ll only have so much you can spend that day. Making the shoes too much to buy on the spot. Now in the future You’ll be better off. And you’ll be able to get the shoes at a later date when you’re in a better situation financially.

Privacy

Everyone needs their own private space, and you really can’t get that using credit. Let’s say you’re and your man/woman is on a weight lose journey together. You both been doing well on it. But mentality you need a break. Say you’re driving down the street and you see your favorite gyro spot coming up. So, you pull into the parking lot to just smell it. You want to get a little closer, so you jump in the drive thru line. Next, thing you know you’re ordering one. Coming up is the window to pay. Now you can use your credit card, but the bill will show where you been. This is the perfect time to your cash as your get out of jail free card. All you have to do is get rid of the evidence and buy some gum. How will they ever know!?

Credit Examples

Building Your Credit Score

If you are someone who not happy with your credit score and wants to change it for the better. Using cash will not benefit you in any way. Being able to use your credit cards for paying small things that you can manage the payments such as food, gas for your car, and subscriptions will benefit you. Say, you’re using your card for all 3 things, as long as your usage rate makes since I say your off to a good start to bring that score up.

Protection

Let’s say your online shopper. You come across some deal on some shoes you really been looking for. The deal is so good you buy two pair. One to rock and one to stock. You use your credit card to make the purchase online. They give you your tracking number, its say’s your package will be there in four days. You wait your four days watching the tracking number. While you’re at work you check your tracking number and says your package has arrived at your home. Now you can’t wait to get home to get it. Quitting time finally comes. You make it home and there’s no package. Because you used your credit card you can now dispute that purchase and not be charged for them shoes. You can also get things like transaction monitoring, card verification value, two-factor authentication, and other things for your protection and security.

Emergencies

Let’s say it’s the beginning of the months and you have just paid all your bills. Everyone is taking care of, its food in the house, and all the bills paid. It’s the weekend and you wife/husband say they’re going to make a store run. So, they head out only to return in mins. You ask if they forgot something, and they say their car not starting. You go take a look and whatever it is, is beyond anything you can handle. So, now you get the car towed to a shop to see what’s wrong with it. They tell you it’s gone be around 3k to fix. Now you don’t have that kind of cash on hand. Now you know you need your car because you both have to be at work around the same time and the kids have to be at school. So, the best thing to do would be to put it on the credit card. Get everyone back on track before the new week starts.

Summary

So, to bring this post to an end my friends. Eah credit and cash has their time to be used. Making both of them benefitable in their own ways. If you use them right, you’ll be alright. Thanks for your time today and the visit. Please come back again and tell your friends and family about the blog. Let me know in the comment which you like to use and for what. Good luck out there!