One Caveman’s Financial Journey

This is the second installment of Credit Perspectives. Please visit the introductory post for the other perspectives provided in the rest of the series.

The idea of credit has been around since before money was invented, but the invention of the credit card in the 1950s crippled our economy. Never before has it been so easy to access credit and never have we been so free to tap throw away our futures.

By opening up and extending the consumer’s spending power, credit cards have stretched our economy to the brink of collapse. Now that everyone has nearly unlimited access to the ability to spend beyond their means, we’re finding that many adults don’t have the impulse control necessary to handle such responsibility.

It appears that the world of commerce is evolving and cash is (unfortunately) on its way out; but that doesn’t mean you have to follow the trend. While some transactions require a credit (or debit) card, pretty much anywhere you can access in person will gladly accept cash. Don’t give up on those dependable paper bills just yet.

Cash Is Accessible

It doesn’t matter whether the power is out, the phone lines are down, you’re under 18, you have bad credit, or even if we’re under alien attack, cash is always spendable.  There are no rules or contracts that prevent you from using cash, no technological limitations on cash, and no question to how much you have. Cash in hand is the surest way to freedom.

Cash Is Merchant-Friendly

Every time you swipe that devil card, the credit card companies charge the merchant a fee plus a percentage of their sale for the “convenience” of accepting said card. Because merchants have to recoup that cost, they’ll gladly pass it on to you. Some have even begun encouraging cash transactions again with discounts for using greenbacks instead of plastic. Consider it a free bonus for both of you to use cash.

Cash Is Safe

There are no numbers one can steal, no databases one could hack, and no identities to hijack that will give access to the cash someone has on hand. Much of today’s problem with fraud and money has to do with 1s and 0s in a database at some company you may never have heard of. With cash, there is no risk of remote access - your hard-earned money can only be removed from you directly, which is quite unlikely.

Credit Cards Encourage You To Spend

When you’re carrying cash in your wallet, you (should) know exactly how much money you have and you are not able to overspend.  As soon as you start relying on credit cards, that natural limitation is gone and you’re free to mindlessly spend as much as you can.  You may think you need that new flat screen TV and the credit card company surely isn’t going to stop you from buying it, even if the purchase is too expensive for you to pay off later.  It’s better to save up your cash first and give yourself time to decide how much you really want the that expensive luxury item.

Credit Cards Are Designed For Debt

Once you start spending, the credit card companies are betting that it will be hard to stop.  Soon, you’re carrying balances from month to month and paying ungodly sums of interest to these plastic devils.  These companies encourage you to put your whole life on this card with the hopes that you will get overwhelmed - that is when they start profiting off of you.

Don’t let yourself get sucked in by the siren song of these sleazy usurers.  They hide their snake oil under the veil of “convenience” but they’re really in the business of revolving debt.  When it comes to real financial freedom, cash is king.  And, unlike Visa, cash really is accepted everywhere.

Other articles you might enjoy reading

• Credit Perspectives: Credit Cards Are Dangerous Tools
• Credit Perspectives: Credit Cards Are Good
• Credit Perspectives: 3 Ways To Look At Credit Cards
• Personal Balance Sheet, February 2008: Net Worth +3.14%