Home' Trinidad and Tobago Guardian : July 9th 2017 Contents B8
guardian.co.tt Sunday, July 9, 2017
BUY IT CA$H
Guardian Media Limited
For many transactions we engage in, the
prudent, financially responsible thing to
do is simply to pay in cash.
“Cash” here refers to your personal stock
of money - what belongs to you.
For obvious safety reasons, walking around
with loads of paper money isn’t a wise thing
There are however, a few benefits associated
with paying in cash.
1) It makes the transaction “real.”
Paying for things in cash is the “realest”
way of conducting our affairs.
When we use cash we are intimately aware
of how much we have and how much we don’t
When we dip into our wallet, we know im-
mediately that we’ve just pulled money from
what we had, and now we quite literally have
There is nothing more sobering than know-
ing the moment a transaction is complete you
now have less cash available to use.
2) It helps you spend less.
This point is a direct follow on from the
Once a transaction becomes more tangible
when we pay cash, we tend to become more
conscious about our spending.
The psychic effect associated with paying in
cash has a way of focusing us on connecting
how much we spend, with the things we’re
spending on and thus really restraining us
from spending wildly.
3) It keeps us out of debt.
Pretty obvious right?
When we pay in cash, we’re using our money
and not that of another person or institution
for which we will be held accountable later and
possibly with a great cost attached.
Not all debt is bad, but in several instanc-
es using our own money is the more sensible
thing to do.
Generally speaking, anything that can be
returned or isn’t going to make money for you
in the long run, should be bought with cash.
Here are some things that should be
If you can’t pay for entertainment with your
own money, you sure as heck should not be
using anyone else’s!
Borrowing to keep our social status active
(think loans for Carnival costumes as a not so
arbitrary example) is a terrible way to destroy
our financial well-being.
Most times, the long-terms costs outweigh
the short term benefits.
2) Furniture, appliances and
The concept of “hire purchase” is like the
perfect form of magical misdirection.
“Let’s just dangle this nice shiny object
(furniture or appliances), get people all ex-
cited about it, make them “need” it and they’ll
totally ignore how much money they are really
paying for it” said the hire purchase genius
And guess what?
He’s right because it works.
It’s better to pay cash for things like fur-
niture and appliances cash.
If we sat down and counted the actual cost
of paying for goods “on terms” one would
probably realise the only person that’s really
winning is the seller.
Further, why take three years to pay for
something - with high interest - that will
become obsolete in two anyway?
After saying “I do” there’s no harsher bap-
tism of fire than having to enter into what is
supposed to be a lifetime commitment sad-
dled with the cost of an event that literally
lasts one day.
A couple things here.
Firstly, marriages are about love right?
Therefore the size, scale and spectacle of
the event should be based on what the loving
couple can reasonably afford.
Additionally, nothing says “I love you”
more than taking care of and looking after
each others finances.
As the saying goes, never hang your hat
where your hand can’t reach.
Everyone wants to take that vacation that
they’ve always been dreaming about.
Where ever you’ve set your sights, its better
to pay for it with your own money.
Borrowing to pay for a vacation is tanta-
mount to spreading the cost of it over more
time than the utility you derive from it.
Certainly these experiences can’t only be
viewed or quantified in monetary terms.
However having a “vacation fund” that
money is put into consistently toward the
big trip is the far better way to go.
Saving for it and spending your own money
on it will make it far more worthwhile in the
To this list several other things could
Most times, getting what we want, on our
own financial strength makes the value we
ascribe to it much higher, and the enjoyment
of it much sweeter.
COMING NEXT WEEK
When It’s Ok To Borrow
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