Abandon Nest

You’re at the grocery store and you’re buying your week’s worth of groceries. The cashier announces the total. What do you do? Me, I reach into my wallet and grab my debit card, paying for the purchase in full. I see others pull out a wad of cash and plunk down $20 bills. It seems the question paper or plastic has moved from the bagger to the cashier. What are the options?

• Cash - Cold hard cash is the most reliable of currencies. Few places reject cash (although I’ve heard there are some extremely high class places in big cities that do) so it is usable almost everywhere. My personal problem with carrying cash for everday expenses is the temptation to spend. I guess you can say that money burns a hole in my pocket. If you have great financial self-control (or you like to show off) then cash is probably the way to go.
• Debit Card - I love my debit card. I pretty much use it for every purchase. Why? It’s convenient because funds are deducted from my checking account. Also, pulling out the card gives me that extra moment to say, “Do I really need this?” Most checking accounts come with a check/debit card nowadays. Make sure you get one with the Visa or Mastercard logo on it that you can use it online for purchases and at most stores.
• Credit Card - Credit cards carry the world of convenience to a whole new level. Reach into your pocket, swipe the plastic, sign your name, and you’re on your way. What could get easier than that? The truth is, use like that will only end up getting you in trouble. Frequent credit card users need to keep expenditures in check so that they can pay their balance each month. However, on a positive note, credit cards often offer rewards and bonuses for using them, just beware the fine print.

Obviously each strategy has its benefits and drawbacks and I believe it really comes down to a matter of personal preference. Do you feel comfortable walking around with a big chunk of money in your pocket, or would you overspend? Do you think that you can handle the risks associated with a credit card and keep track of your purchases? What about the debit card, can you avoid falling into the negative and being overdrawn, possibly amassing huge fees? These are all important questions to ask yourself when considering your preferred purchasing method. So we come full circle to the initial question, what do you do?