Why Cash Allowance?
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

Why Cash Allowance?

Why Cash Allowance?
 
 
 
 
Why Cash Allowance?
 
 
7 Compelling Reasons to Use Cash Instead of Credit
 
 
 
 
 
1. Purely Psychological.
Credit cards make it too easy to spend money. Just swipe the card and you can bring home the latest smart phone/tools/clothes. It’s much harder for us to let go of our hard earned cash. The physical action of handing over cash to someone else is a lot more difficult than swiping a card. Try handing over $100 cash for a pair of shoes. It’s much more painful than just swiping a card.
2. Easier to budget for discretionary spending.
 
 
Both of you each get $80/week to spend on whatever we want. That’s  your  budget for discretionary spending (plus groceries). Once you run out of your $80, you  have to wait until the next week before buying something. When you are using the credit card for discretionary spending,  you  usually loose  track of how much  you spent already.
3. No consumer debt.
If you use cash, then you won’t have a problem with consumer debt. Credit cards enable us to spend the money that we don’t have and it’s easy to lose control. How else do you explain the average US household’s credit card debt of $15,263?
4. Delayed gratification.
When you  need to make a larger discretionary purchase,  you  have to save up for it. This delays the purchase and many times,  you will  find out  that  you didn’t really need it after all. Putting off purchases  also gives you time to research for a better product and deals.
5. Less guilt.
When you have cash left at the end of the week,  you  don’t feel guilty about spending it on yourself. Sure, you  can save it too, but usually you  just go out for happy hour or something like that.  You can enjoy it because you  know it’s already budgeted.
6. Change jar.
This is a small side benefit. You must  hate carrying coins and you  always put them in a change jar when you  get home. This is a side saving that builds up over time. It’s always a nice little surprise when you drop by the bank to deposit it.
7. Cash is not traceable.
 
 
Your credit card purchases can be easily tracked and if you’re on the run, the cops will catch up with you very quickly.
Of course, the cash allowance might not work well for everyone. There are some downsides. It’s more difficult to keep track of every penny you spent when you use cash. You also lose out on reward points if that’s something you care about.
Many of you probably can control your credit card usage much better  but You should really try the cash system to see if it makes any difference. You might surprise yourself. Have you tried it?
 
 
 
 
 

0 Comments to Why Cash Allowance? :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment