The entire world is in debt. Every individual is in debt. Every company works on debt. The financial teachings say that you must use other people’s money to evolve.
Cash only strategy is one that can save you right now. I read nowadays that with this crisis, the old school capitalism is dead, and it will be followed by an era of savings. I personally think that the image of the crisis is too fresh in our minds, so people will be cautious with their expenses only on short term.
On middle term they will be lured to enter again in the marketing/buying spiral.
Cash only strategy helps you make a safe heaven around you and your finance. The credit card is a bad invention, which let simple, stupid people (which count for 95% of Earth population) to enslave themselves, buying on expense of their future life.
Actually, is a comparison that you can make with selling your soul to the evil one
. You get instant reword on the expense of future life
Using cash only can help you detoxify of this un-useful habit. Try for a week to pay everywhere only with cash. Sensing the hardcore cash, will make you more responsible, will make you more aware of the limits of your financial strength.
Try hiding your credit cards somewhere in the house and fighting the instinct to use them.
Also, using only cash, you will make a lot of savings. You will not pay interest rates and commissions, and you will spend less. Because it will be more difficult for you to VISIBLY spend, versus credit card spending, which are thin air…
USE CASH ONLY for a week. And then use cash as much as possible. And after that, use a debit card, not a credit card, because debit card will not let you spend more then your limit
CASH ONLY strategy is good to survive during a recession, like this one, and make you a happy life.