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Cash Is King!

Cash Is King is the basic principle of using cash instead of debit/credit cards whenever possible. If you understand and follow the basic principle of “Cash is King” you can change your life forever. Your life will be less stressful financially and you will be taking your first major step toward “financial peace of mind”.

“Cash is King” is an easy principle to understand. However, it can be difficult to follow. This principle is the key to a less stressful life. There are many of our family, friends, and informational sources out there that tell us how to manage our finances and it seems that those sources do not address the “root cause” of our financial troubles. The biggest problem is that we live in a world of plastic, credit cards, easy spending and for all practical purposes, we do not respect or understand the value and importance of using cash. If you follow this simple but socially different principle of “Cash is King” you can start your journey on the road to “financial peace of mind”. Here are some basic suggestions on how to follow the “Cash is King” principle.

When you are paid, preferably on a monthly basis, cash your checks for the month and make sure you allocate enough cash to pay your rent/mortgage, utilities, and any other fixed expenses you may have. Take 10% of your total check and put it in savings. Any amount of cash that is left should be used for food, clothing, gifts, entertainment, gas, etc. The best way for you to control this cash is to divide and allocate certain amounts of it for each variable expense and store this cash in labeled envelopes. At the end of each month place all of the cash you have left into your savings account. This is called the envelope system.

Now, remember that this cash is the only way you can purchase something. Once you have used all your cash for the month there can be no spending until your next paycheck. Unless there is a true financial emergency. This is tough! You say, no credit/debit cards? You say you must be kidding! How will I ever get through to my next payday without using my credit/debit cards? They say smoking is hard to give up, but I think sticking to the principle of “Cash is King” may even be harder!

Stick with “Cash is King” and manage your money. You will start by finding cheaper places to buy gas, run your errands more logically and take your morning coffee from home instead of buying that latte every day. You will find ways to cut the many subsc