There’s no denying how convenient and flexible credit cards can be, but that doesn’t mean they’re always the best payment option. For a lot of purchases, using cash can help you save a lot more money and avoid those expensive interest charges. To help you make the most of your money, let’s take a look at some common purchases where paying with cash is the way to go.
Small Everyday Purchases
Sure, a single coffee or snack might not feel like a lot of money in the moment, but these regular, low-cost purchases can add up quickly when you’re using a credit card. If you find it hard to resist the temptation of everyday snacks and drinks, paying cash is a great way to keep you mindful of your spending and help you stick to your budget.
Gas Station Transactions
Did you know that many gas stations charge an extra fee for using a credit card? This is often listed as a “convenience charge,” but you can avoid it altogether by paying in cash. What’s more, this ensures you’ll get the advertised lower price per gallon, which can save you a whole lot over time.
Tipping Service Workers
It’s important to tip our service workers for all the hard work they do for us. However, you may be surprised to hear that credit card tips can sometimes be delayed or reduced by processing fees. On the other hand, using cash for tips ensures the person you’re thanking actually receives the money in full and on time.
Tickets for Small Events
Another purchase that often comes with hidden credit card fees is tickets for local events, like fairs or concerts. Paying cash at the door or box office not only eliminates these charges but can also help you stick to whatever entertainment budget you may have.
Secondhand Items
If you often find yourself shopping for used items at garage sales, flea markets, or thrift stores, you might want to consider paying with cash, as this can give you leverage to negotiate better prices. Many sellers are significantly more likely to lower their prices when you offer cash on the spot.
Medical Co-Pays
Medical costs can be expensive, but using your credit card to pay for them can hike up the price even more. When you use cash to pay for small medical expenses, you’ll avoid adding unnecessary debt to your credit card. It also simplifies tracking healthcare costs, especially if you want to make sure you won’t have to deal with unexpected interest charges later.
Groceries on a Budget
It’s always a good idea to try to stick to a grocery budget, and paying with cash is a great way to keep you on track. It’s easy to overspend when you’re swiping a card, while cash makes it clear exactly how much you can afford to spend on each trip.
Haircuts and Beauty Services
As you may have noticed, some salons and barbershops offer enticing discounts for paying in cash, as this helps them avoid card processing fees. Plus, cash tips go directly to the stylist or barber without any deductions, making it a win-win situation for everyone involved.
Minor Car Repairs
All car owners will need to take their car in for minor repairs eventually, but these costs can quickly add up if you’re not careful. The good news is that paying cash for repairs like oil changes or tire patches can sometimes get you a better deal. Many mechanics are happy to negotiate prices or waive minor fees if you’re paying on the spot instead of with a card.
Local Produce Markets
Farmers’ markets are great for supporting local businesses and eating healthier. But if you’re considering becoming a regular customer, it’s important to know that these markets and produce stands often operate on a cash basis. Even if they accept cards, there’s usually a small fee involved, so it’s best to bring cash to ensure you’re not paying more than necessary.
Babysitters or Pet Sitters
If you’ve ever had a babysitting pet sitting gig, you’ll know that it’s a lot nicer to receive cash for your services. This eliminates the hassle of processing digital payments or waiting for checks to clear. Paying cash also makes the transaction feel more personal and satisfying.
Takeout from Local Restaurants
A lot of small, local eateries offer discounts for cash payments or charge extra fees for credit card transactions. If you want to make sure you’re supporting the business directly while also saving a little money yourself, it’s always better to go with cash.
Gym Classes or Personal Training
Before you go to that gym class or personal training session, it’s important to consider your payment options. After all, some independent trainers or small fitness studios offer discounted rates for clients who pay in cash because this can help them avoid processing fees and simplify their bookkeeping.
Household Help
If you’re in the market for services like lawn mowing, snow shoveling, or housecleaning, it’s a good idea to get your cash ready to pay for them. These service providers find that it’s the most convenient and straightforward way to be compensated without the extra hassle.
Gifts for Special Occasions
It can be tempting to stick your head in the sand by putting all your Christmas or birthday gifts on your credit card to deal with later. But the thing is, this can make you spend a lot more than you would’ve wanted to. On the other hand, cash helps you stay within your means while still giving thoughtful presents.
Dining Out with Friends
It’s important to treat yourself to a meal out every now and then, but restaurants can be pretty expensive these days. If you’re looking to save money and avoid the hassle of dividing a credit card charge, you’re better off paying in cash. This also makes it easier to leave an appropriate tip without overcomplicating things.