Which one is better, cash or debit?
Cash
The idea of walking around with cash could seem old and outdated. However, using cash is a very good budgeting strategy. So, why even use cash? Using cash can help you stay within your budget. This method allows you to know exactly what you are spending each day. Within your budget you allocate a certain amount of money for each category that you can spend cash on. You would withdraw that money from your bank account each paycheck. When those funds are depleted, you can no longer spend any money in that category.
There are, however, some downsides to using cash. Carrying around large amounts of cash could be a safety concern. One way to alleviate this is to only carry the cash for the category you believe you will need on that day. Additionally, many businesses are moving towards cashless payments.
Debit
Using a debit card may seem like the easier option to pay for services or goods. For one, you don’t have to carry a large amount of cash with you. Secondly, it provides some protection if your card is lost or stolen. However, one disadvantage of using debit is that you are not always aware of how much you are spending. The truth is that most people do not check their balances on a monthly or weekly basis. It can be easy to lose sight of how much you are spending when all you do is swipe your card.
Whether you use debit or cash the key is to take control of your finances. Be aware of your available funds and what you are spending on a day-to-day basis. Budgeting for all your expenses is the best way to stay a step ahead and be in control of your finances.