Teach Your Children To Pay With CASH! - CASH IS KING!
Posted on June 29, 2008
Filed Under All Ages |
Welcome Paupers,
Today, I want to discuss an important subject… CASH!
Yes, CASH… Let me state for the record: CASH IS KING! Yes, CASH IS KING!
I have been reading article after article lately talking about the benefits of using CASH as opposed to using credit cards… and I am really getting excited about this.
I want you to start paying with cash. I want you to start showing your kids that you pay with cash. I want you to start talking to your kids about paying with cash.
CASH, CASH, CASH. Ok, now that I have seared that into your brain… lets start talking about why CASH IS KING ?
Cash is king because of the way spending cash makes you feel. When you pay with cash, you have a direct psychological connection with your money, your cash… as opposed to paying with a credit card. When you pay with a credit card, you do not feel like you have parted with any real money, or cash. Instead, you make your transaction without that sense of loss… without the idea or concept that you actually spent anything… that disconnect is what causes you to spend more than you would if you were paying with cash. I challenge you to think about the last 6 months, and think back to all of your grocery store trips, your target trips, your home depot trips, etc… and ask yourself seriously… did you spend more money than you should have ? did you spend more money than you would have, if you had needed to pull out your check book or use the cash in your wallet ? How much more did you spend ? 10%, 20%, 50% ??? I have heard all kinds of numbers, but, 99% of the time, people tell me that they spent a great deal more than they should have, by paying with a credit card.
The credit card companies have worked very hard to convince you that when you pay with your credit card, and purchase that new 52″ LCD, that you are not actually spending $2,000.00, but instead, you are actually only spending $60 per month. That changes your entire perception about the purchase from $2,000 out of your bank account, to only $60 per month… which sounds better to you ? 
Of course the $60 sounds better… it sounds much better… in fact, even someone with very little means can rationalize to themselves that they can afford $60 per month. Heck, my eight year old could probably come up with $60 per month if she saved enough cans and bottles. Ok, so why is this so bad ? Why can’t we just use the credit card for the $2,000 LCD and pay $60 per month ?
Because it will take 4 years to pay off that LCD at $60 per month. Yes, FOUR YEARS! In addition, you will have spent an additional $870 in interest charges over the life of the payoff term. So, that LCD, which will probably we worthless in 5 years, will actually cost you $2,870 over the life of the payoff.
Now, I have a few points to make about this. First, you don’t need a 52″ LCD. Yea, I said it. If you are here reading this blog, you can’t afford it. If you are a Pauper, then you cannot afford a 52″ LCD. What can you afford ? I don’t know for sure… but, I would guess that you can probably afford a 19″ TV from walmart for $278… yes, I said 19″… you can survive on a 19″ tv. Plus, it will only take 5 months to save $60 per month and you can pay for the tv in cash… yes cash… so, please keep in mind, that the purpose of this site is to teach you more than one lesson… one lesson, pay cash in stead of credit, and the second lesson, SAVE MONEY… stop overspending… stop buying things that you clearly don’t need… don’t buy a 52″ LCD… thus enslaving yourself to 5 Years of $60 payments… instead, save $60 per month for five months and pay cash for a 19″ tv.
Robert Mandrake
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