More and more people are turning to paying for everything in cash or with a debit card so they can avoid debt and live more comfortably. Living on cash has some distinct advantages because it means that you can avoid the costs of credit card debt interest and transaction fees, meaning you have more money in your pocket to spend.
You’ll need to establish a solid budget and review it each week if you hope to stick to this way of life. It’s also important to ensure that you put 10% of all that you earn into a savings account before you spend it.
The biggest advantage to this way of life is that it means that you can never be in debt, as you will only spend what you have earned.
Another good option is to treat your pay as an indicator of what you can spend. If you make less one week then you should spend less in that week. In this way you will always be ahead.
By choosing to go off the credit card and repaying any debt you have on it, you’ll also help to improve your credit rating score.
Source: http://www.mainstreet.com/article/smart-spending/living-cash-avoid-debt
