The beauty of personal finance is that it’s personal. We all have our preferences on how we save money, what we spend money on, and even what we spend money with.

Everyone has a strong preference from cash to credit to debit. Some people swear by cash, while others never carry the stuff. So, what type of payment method should you use? Well, the correct answer depends. I’m breaking down the good, bad, and ugly of cash, credit, and debit.


They say cash is king. Cash definitely has a certain power to it and for some people, it’s their go-to budgeting standby. For those working their way out of debt, using cash is a great option because absolutely no one is going to let you spend more than the cash you have on hand.

You spend what cash you have or what is in your bank account. There’s a reason why challenges like cash detoxes and the envelope budgeting system are so popular for those getting out of debt. The thought is that cash, with its physical presence, is harder to give up. Once we part with cash, we feel the difference in our wallets. It’s a huge difference from the potential of mindless swiping with a credit card.

So, when should you use cash?

  • If you are getting out of credit card debt. For other types of debt, using cash can help you too.
  • At local mom and pop shops. Small business owners like cash, because they don’t have to pay credit card payment fees. While there are less and less places today that are cash only, and especially since the pandemic when all kinds of mom and pop shops…

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