It doesn’t matter if I’m standing in line at the gas station, grocery store, Target, etc., but when I see people paying with cash or debit card it makes me cringe. I would never be as rude to ask someone why they’re paying cash, but it has come across my mind numerous times! If you’re already going to be purchasing necessity items such as groceries, then why not put your purchase on a card that either gives you miles/points for shopping at a grocery store? If cash back is your preference, then you can easily get a card like the Amex Blue Cash Preferred which will give you 6% cash back on all your grocery purchases up to $6,000 per year! To break it down simple, I see it as “OK, I’m going to be spending $100 at Whole Foods and you’re telling me I can get back $6 each time?” OK! Sign me up!

Furthermore, if you’re still paying with cash or debit card in this day and age then you’re throwing cash and free flights right down the drain!

pay with cash or credit

I’ve heard it before and I’m sure I’ll hear it again, someone always tells me they’re not disciplined enough to not go on a shopping spree just because they have a credit card. Here’s my tip for you: Buy a wallet that can hold all your credit cards and leave it behind at the house. When you need to go to the grocery store, only grab that card and then go purchase your groceries and collect your miles or cash back. When you return, put the card back so you’re not tempted to pull it out at Best Buy a buy a brand new $1,500 3D TV. This little trick has come in very handy for me. I purchased a wallet off eBay.com that holds up to 20 credit cards. Of course I always have my main card on me, but it’s an American Express charge card. What does this mean? Think of it as a debit card. If you don’t have the money, then you can’t swipe. Why? Because a charge card expects you to pay off your balance in full each and every month! I’m disciplined enough to log into my bank account multiple times each week and also make multiple payments to my charge card each month. I treat my charge card just like a debit card. The huge advantage over a debit card is I get to collect points through American Express and I can transfer those points to a number of airline partners and eventually get free flights!

Still think you wouldn’t  be able to handle a credit card? Then my last option for you would be to apply for a rewards credit card and then call up the credit card company and set your credit limit to something more reasonable. For instance, if you apply for the Barclaycard Arrival and receive a $5,000 credit limit, you can call Barclaycard and ask them to set your limit to $1,000. Banks will do this for you because they’d rather get any business than no business! This will avoid you from getting out of hand with your credit limit and you’ll only be able to buy smaller items like purchases from Walmart, Target, groceries, etc. and you won’t be able to purchase that nice looking 3D TV at Best Buy 🙂 I think this last tip is the best option for those who’ve run into problems in the past with credit cards.

Furthermore, your credit cards can offer purchase protection that cash and your debit cards can’t. Read my post from yesterday which talks about how I was able to get my money back on a polo I hated. The store didn’t accept returns and American Express was able to give me my money back simply because I put the purchase on their card!