Will that be cash or credit for your purchase today? Every day we are asked this when checking out our groceries, getting our favorite fast food to purchasing that amazing pair of shoes we have wanted. While some use only cash for all their purchases and other use credit cards, there are several advantages or disadvantages to using both forms. Each and every consumer needs to educate themselves on credit verses cash and issues such as convenience, spending habits, fees, and theft protection to secure their financial future.
In today’s busy society, it is much more convenient to pull out a credit card to make a purchase today and pay later, credit cards allow for delaying the initial expenses or waiting period on larger purchases so you can have it now. Or when cash isn’t available, that unexpected expense occurs, such as the dryer going out or the car needs a new transmission. These purchases are generally quite large in amount, and without the purchasing power of credit cards, many consumers would be without the means to be able to react to life’s little emergencies. According to Dave Ramsey over 20 billion credit card purchases were made in 2011. Showing that people are taking advantage of convince of credit cards to the maximum.
Online shopping has grown to a multibillion dollar industry. When making a purchase online, it is nearly impossible to use cash. Using debit cards which are connected directly to the card holders checking account in effect cash, is not recommended for online purchases. There is little to no protection from fraud or identity theft when using debit card for online purchases. The preferred method of online purchases is the use of credit cards for convince and protection.
However, when establishing a cash budget individuals must develop a highentend awarnesse of spending habits, and prioritize them by need and importance. When planning a budget, first establish your needs verses your wants. Second, determine how much...