- Paying in cash forces you to consider the real purchase price - No matter what you're buying, the fact that you're paying in cash turns it into an entirely different experience. That's because you have no choice but to consider how much money you're paying overall, and not just what you'll have to pay on a monthly or yearly basis.
- Paying in cash might help you spend less - When you force yourself to pay in cash, big ticket items start to lose their appeal. Try walking into a dealership with the intention of paying $15,000 or $20,000 for a newer car. All of a sudden, the prospect of keeping your old paid-off junker becomes an incredibly attractive option. Am I wrong?
- Paying in cash keeps you out of debt - The best thing about refusing to finance things is that it keeps you out of debt in the first place. We all know what a slippery slope that can be. There are so many benefits to being debt-free, including the option to save more of your income, less stress, and of course, the feeling of not really being beholden to anyone. It's a freeing feeling, and it's one that I will never, ever surrender without a fight.
How do you feel about paying cash? Is it painful? Do you think it should be?