We talk about getting out of debt and staying out of debt as a major step in securing your financial picture.  The reason is obvious and has been espoused many times: it provides freedom in that you are not paying monthly payments, high interest and fees.  What you can do with the money that you do not have to pay to creditors like this is move towards a cash-only lifestyle.

Cash on Demand.  By cash-only we do not mean that you carry large amounts of cash with you at all times.  Rather, you pay your budgeted items with cash that you have built up over time from your checking account that is fronted by a debit card.  In fact, there are not many things that you cannot pay with a debit card.  Even most Doctor’s offices now accept payment or office co-pays from credit and debit cards.

Reigns in Your Spending.  By using a debit card, you also must have the cash in your corresponding checking account to cover the amount you are spending, so you avoid the other problem with credit cards that encourages you to spend more than you have.

Forces You to Be Responsible.  If you have an item in your budget, then you can spend that money for that item.  This is the simplest form of cash-in and cash-out system.  The mindset that this encourages is for you to not spend what you do not have.  This runs contrary to all of the advertising that you see for credit and credit cards in our society.

Gives You Peace of Mind.  Do you recognize that feeling of being able to sleep at night knowing that your bills are paid and you do not have this dark cloud of debt hanging over your head?  Do you realize how far that goes to provide you with a healthy life?  Many connections have been made between the physical and mental well-being of people that prove this to be true.  Less stress equals less physical ailments.

Blunts Emergency Budget Busters.  When you live a cash-only lifestyle and have cash-on-hand for life’s little unexpected “joys,” you will find that they are more of an inconvenience than a major financial crisis.  This also translates to your relationships.  How many money battles are out there because there isn’t enough money to go around and pay for these types of unexpected surprises?

When you think of all the benefits from living a cash-only lifestyle it is just too good to pass up.  Begin today to move yourself towards that goal.  Take first steps like getting rid of one credit card at a time by paying it off and cutting it up.  The good feelings are guaranteed to make your life better!