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Cash Is King

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photo by m360


As the saying goes… “money talks, bulls**t walks”. Nothing works better than cash, because cash is king. The American dollar has gained some strength in the last couple of weeks and with any luck it will get better.


Why is it that less and less people over the last few decades have been using cash less? Let’s take a look at what’s been going on during that time period. Credit cards have been the culprit in the drop of use of the American dollar. That’s because as Americans we are living outside of their means more and more each year. We as Americans are getting very careless with our financial responsibilities by going out too much, competing with our neighbors, as well as thinking that we deserve it right now.
For us to get control of our financial future, we need to work on our present financial condition.
We need to sit down and really look at our finances in a realistic manner. How much is coming in? How much is being spent? What is it being spent on? Is this purchase necessary? These are the questions that you need to ask yourself. Instead of saying “I deserve to buy this for myself”, you should ask yourself “have I earned this and can I afford it”?. We all think to our selves that we work so we are able to live and buy the finer things in life, but what good are those items if you are paying more than you should be.


You want to have all the toys that you can afford. You would be able to buy a lot more if you bought all the things with cash than you would if you paid by credit card. Even with a great credit rating, if you don’t pay it off in full the first month your interest rate would be around 8% at best. Typically the average American household has $7000 in credit card debt and the average rate is 18%, so if you only pay the minimum balance due it would take you over ten years to pay it back. Also keep in mind that the balance will generate about $100 in interest fees each month. How are you to make your money work for you if you give over $1200 each year to someone else? If you do the math you will actually pay back over $18,000 to the card issuer.


Paying cash will make it possible for you to add more money to you savings, retirement account, or just make your money go a lot further.
I’ve paid of all of my debt and have lived that way for many years. There are times that I want to buy something, but I hold off in doing so. What I do instead is I will put money in my portfolio and make investment to increase it. When that’s done I will go ahead and purchase it. If you think about it, I end up paying less for the item by having my money do the work for me. The last big ticket item that I bought was a laptop for $1800, I put a thousand dollars to work for me and in no time it made me the other $800. Think about what you’re doing to yourself every time that you buy something with a credit card. Remember that cash is king.

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