Live Without Credit Cards

The best way to escape from our mindless purchase economy is to ignore your credit cards in favor of pure, reliable cash. Credit cards undoubtedly have value – purchase protection, rewards, convenience – but only for consumers who use credit responsibly. No Credit Needed wrote a useful guide for anyone willing to live the credit-free life.

Life without plastic requires a few components:

  • Budget: Every month, NCN writes out a comprehensive budget: “I divide my salary into three major categories – Give, Save, Spend – and then I break those categories into smaller sub-categories. For example: Give – Tithes, Offering, Charity. I then allocate, on paper, all of the funds that I receive for the month into those sub-categories. I spend every dollar, every month, on paper, before the month begins.”
  • Payments and Spending: NCN makes payments either through his online account or with plain checks. For internet purchases, he uses a debit card.
  • Transfers: NCN dips into his high-interest savings account once per month. We do the same, and enjoy the financial discipline imposed by limited trips to the cookie jar.

A cash-only lifestyle isn’t for everyone, but it’s an easy way to force yourself to consciously consider each and every purchase.

How I Live Without Using Credit Cards – My Simple System For Living On A Budget [No Credit Needed]
(Photo: danesparza)