Credit cards and debit cards are very easy to use and they can be great, but that ease of use can also get you in trouble over the long run. This is why I believe as a consumer you should take advantage of credit card reward programs when you can, but also carry cash and use that for most of your smaller purchases. Cash doesn’t have the potential to get you into a much deeper hole like credit or debit cards do.

Some people have gotten into a habit of only using their credit card and never carrying any cash. This is certainly convenient, and if you live in an area where theft is high it can also be wise, but in most instances using credit for all purchases is doing a little too much. Using that debit or credit card every time you go to a local fast food restaurant for lunch or catch a movie on a Friday or Saturday night can create bad habits.

The great thing about cash is you can’t what you don’t have. If you don’t have enough cash, you simply will have decide what you want to buy and what you won’t be able to purchase. While this might not be quite as convenient as using your favorite card to buy everything it is also much more safe for your personal budget.

The amount that you should use cash versus credit or debit cards really depends on your spending habits and how well you are able to keep things under control. You need to be completely honest with yourself and realize that if you like to use that plastic too much, it may be a good idea to go back to counting out those dollar bills. It’s alright to pay for things in cash sometimes, in fact it can be a great way to stay away from credit card problems.