Living A Cash Life - How's It Working for You?

[freedomnow7]

I'm just trying to put together my post BK strategy.

Even when I feel that I am responsible enough again to have credit, I just don't want to pay the price (meaning interest + fees) of borrowing money. I don't desire "paper wealth" through real estate or other means, but real cash wealth.

There are companies that I've heard of that have 0 debt...in fact, here's an article of 10 companies that have ZERO debt, and billions in cash: http://www.thestreet.com/print/story/10780616.html

I know that we can't live completely off the radar, but has anyone found a "happy place" after BK...where they are living as debt free as possible, and using financial institutions as little as possible, or perhaps, not at all??

[bkinparadise]

I do still need to deal with banks as I need to cash my paychecks. I'm still in the process of doing my Ch 7 and I have my 341 meeting in a few weeks. In the meantime, I cash my paycheck with the local bank it is written from. If I do need to cash checks that are not written from local banks, I go to the Money Center at the local Wilmar. They cash checks for $3. I can also get a debit/CC card from them also. Paying cash only is great. I know how much I have and I don't live beyond my means any more. No more credit card or store cards to deal with. If I can't buy it with cash, I don't buy it. If I really want it, I'll save for it. No more bad credit floating around every month. Pay my necessities, mortgage, cell bill, and I'm done every month. If I have other things that come up, I am working on building an emergency saving for the unexpected.

[AngelinaCatHub]

I do still need to deal with banks as I need to cash my paychecks. I'm still in the process of doing my Ch 7 and I have my 341 meeting in a few weeks. In the meantime, I cash my paycheck with the local bank it is written from. If I do need to cash checks that are not written from local banks, I go to the Money Center at the local Wilmar. They cash checks for $3. I can also get a debit/CC card from them also. Paying cash only is great. I know how much I have and I don't live beyond my means any more. No more credit card or store cards to deal with. If I can't buy it with cash, I don't buy it. If I really want it, I'll save for it. No more bad credit floating around every month. Pay my necessities, mortgage, cell bill, and I'm done every month. If I have other things that come up, I am working on building an emergency saving for the unexpected.

Clap, Clap, Clap!!

Yes it is tough when you are used to just 'getting it' when you 'want it'. But cash is king. We are struggling like many but FREE!!!! We owe NO ONE. That feeling you cannot buy. You only earn with good self control, and we have been discharged for some time now and NO I have NEVER checked my credit rating. No need to as I shall not go into debt for any reason. 'Hub

[SMinGA]

I use banks/debit cards - personally feel I spend more responsibly that way than spending cash directly. We have worked out a pretty good system, based on how we're paid. Actually, I utilize 3 savings accounts which may seem complicated but it works for us.

First I work a salaried job, fixed income amounts each payday. That covers mortgage, utilities, bills with some to spare for a mock car payment. (Which goes into savings, building a fund either for a good car downpayment or to buy one outright.) And then an hourly job w/ tips. I have a projected income of $X to make each week on the 2nd job - anything over goes into a savings account to prepare for weeks when $X does not happen. After all, it is an hourly job and the pay can fluctuate. The part time income covers ALL expenses. Groceries, gas and all the misc household/family expenses that may come up. Some of that happens weekly but then some things (car maintenance, clothing, etc.) are less regular and don't happen every week. So at the end of every 2 week pay period, I move all the remaining expense $ to another savings account - to prepare for when those things ARE needed.

It is working for us.

[SubPrimeME]

We are going on three years CC free. It's nice to know that the *man* isn't after us anymore. We are able to save 35% of our monthly income- and some is in savings, some in CD's, but NONE of it is with our debtors!

SO it can be done, and once you are past the facade that the CC companies want you to believe (that credit is good, quick buy that plasma TV), then you will realize that saving for something feels better then the minimum payment made to the man.

[trying_to_fix]

Why not the best of both worlds? Get credit cards and pay them off at the end of every month. That way you still build up your credit score so when it comes time to purchase a home, pass a background check for employment, or even renew your car insurance your credit score is increased from your actions.

That's what I've done and it's increased my score substantially and I still don't have to worry about paying interest or other fees.

As for banks, if you're using direct deposit and keeping minimum balances in your accounts you won't be hit with any fees and could likely earn interest on your money instead of just having it sit in your wallet.

[MarkM]

Short term, until folks learn to not spend on what they cannot afford, running CC free is not a bad idea. However, running completely CC free, while good training, is probably not the best long term solution. You are generally far better off to have a CC -- if only for emergency use. If you are using the CC for more than emergencies, the key is to pay the CC off in full each month. That way, the CC company is actually working for you, providing you free credit for 10-15 days rather than earning huge fees/interest off of you. I also think that rebuilding your credit history is important. As a first step, I tend to recommend a "secured" credit card so you can't charge more on it than is already in the bank ...

Just my 2 cents.

[Pandora]

we havent had a credit card since 2008 - dont miss it one bit. Have there been times we needed something immediately, like repairs? Yep... but we've managed somehow and I'm always amazed. I'm even more amazed at when we go into a store and are offered 10-15% off to open a credit card... uhm.. no thanks That "savings" isnt a savings at all, its a "gotcha" in the end.

We use our debit card just like a credit card and pay cash for everything we need. Never again will we have another one and dont miss them at all.

[momofthree]

Why not the best of both worlds? Get credit cards and pay them off at the end of every month.

This may work for some, but many of us have come to the realization that we do not have the self-control to use credit responsibly. Recognizing that and avoiding credit is the only way for us to live a debt-free lifestyle, which we LOVE! We lived without any credit cards for 3 years, then opened up a card for emergencies ONLY. 1.5 years later, we were $30k in debt and guess how much of it was spent on a true emergency---MAYBE $3k--MAYBE.

We loved being debt-free, we loved feeling in control, but we let the credit industry tell us that we needed an emergency card. BIG MISTAKE. A mistake we will never make again. You know what works better than an emergency credit card? An emergency bank account full of cash! Amazingly enough, even auto dealers and people selling their homes also accept cash!

That said, we do already own our home and have a newer car, so by the time we need to buy a new car or home, we should be able to pay cash.

[NHC]

I'm liking it. I use cash for the things I need and I budget accordingly. I have a small savings account built up and my vacation in August will be all cash.....I did get one of those $300.00 credit cards and I've charged about 12.00 of gas on it...and already paid it. I'll wait a couple of weeks (until the next billing cycle) and do that again...

The part that I like is that the stress is gone...the creditor calls are gone. I can actually answer my phone and know who is calling. My mailbox is no longer stuffed with collection letters....

[freedomnow7]

You guys are really inspiring me.

In the past three years, I've seen my six figure bank account dwindle down to -600 (yes, NEGATIVE) from 2007 to 2008. All while driving a leased BMW. Other than that, I have very little to show for it. Heck, I don't even have a flatscreen tv.

What a wake up call. This was due to spending more than I should have, credit cards, student loans, and just plain being irresponsible. So, with this pending BK, that I'm filing next week, I am telling the court, "Look, I messed up...big time, I've learned from my mistakes and I want another chance."

I'm slowly seeing that if I don't have the cash to pay for something outright, I don't truly own it. The bank does. And, if I miss a payment or more, watch how fast they come and re-posess it...or foreclose. NO THANK YOU!

So, I have decided to live purely on cash. Hey, if it takes me 10 years to save to cash out for a house, then SO BE IT! At least then I know they only way it will be taken away is through eminent domain...or if the property taxes don't get paid.

We were all born free. And that's the way that I'm planning to live. Heck, I'm even downsizing my e-mail accounts to live a more simplified life.

[tay666]

We've been living cash only for over 3 years now.
Yeah, sometimes it is tough. Those sudden car repairs, or dental visits really wreak havok with the budget.
But, we always find a way.

It will be even easier after the BK is done.
As then I can actually start putting money in savings, without having to worry about a creditor getting their hands on it.

[Universal]

NO CC'S FOR US. I hope it stays that way for ever and ever!!!!!
I love only getting utility bills in the mail, and not those combined with a bunch of credit card bills too.

[oregonpilot]

have been cash only for about 3 months now. Feels really strange going out the door to get groceries with no plastic in my purse.
Did find out the cc works great for scrapping up dried paint off the floor. LOL

[freedomnow7]

I don't know where I read it, but a news article had mentioned about how cash is so final. When you have cash, you know exactly how much you can spend. Even with a debit card you can overspend. I remember going to places like Montgomery Wards, Woolworth and Vons with my parents and the cashier would ask, "Cash, check or charge?" Now, they just all assume that you're paying with a card.