6 Things You Should Always Pay for in Cash

You’ve no doubt heard various adages like “cash is king” and “money talks” relating to the value of paying in cash as opposed to making purchases on credit. However, in an increasingly credit-friendly world, you might wonder why anyone would bother paying with cash these days.

In truth, there are still plenty of reasons to pay with cash instead of credit, and there are certain items that may actually deliver more benefits when purchased with hard currency. Here are a few things you should always pay for in cash.

1. Person-to-Person Transaction

When you shop at retail stores you know that the price on the tag is what you’re going to pay. There is no negotiation. However, there are still venues in which it is preferable to pay cash because a little haggling is expected. Whether you frequent flea markets and craft fairs or you like to purchase items from private parties on Craigslist, you should always increase your negotiating power by using cash. In some cases, vendors won’t even be set up to accept credit.

2. Vendors you Don’t Know or Trust

With identity theft becoming an everyday occurrence, you might worry about using your cards at gas stations, restaurants, bars, and other vendors you haven’t visited before. This is an increasingly valid concern. Anytime you end up at vendors outside your trusted network of neighborhood retailers, consider paying in cash for the sake of identity protection.

3. Vendors that Offer Cash Discounts

Some vendors are keen to avoid paying a percentage of every transaction to credit card companies. They may therefore offer discounts or other incentives to patrons willing to pay in cash. If you know that certain retailers offer such benefits, why wouldn’t you pay cash for your purchases?

4. Items you Might Return

Most people don’t purchase goods with the intent of returning them, but there are bound to be instances in which you’re unsure if you’re going to want or need items and rather than make a second trip to the store, you simply buy them. It’s best to pay for such items in cash so that you can get cash back when you return them. If you pay with credit, it could take days for the money to return to your account and you may face an interest charge in the meantime.

5. Home Furnishings

There’s really no good reason to finance the purchase of home furnishings. If you can’t save enough money to buy a new couch or a dining set outright, maybe you should buy something less expensive, wait on your purchase, or sell stuff on Amazon or eBay to avoid paying unnecessary interest on these minor purchases.

6. Tips

Unless you’re writing off business meals or you use cash back credit cards that offer savings with every dollar spent, paying the tip in cash is preferable for a couple of reasons. First, when you write “cash” in the tip section, you know there’s no chance that the “6” you wrote could be changed to an “8” by an unscrupulous waiter. Additionally, you might do this for the benefit of wait staff. It could make it easier to split tips at the end of the night, and your waiter won’t have to declare an amount over 15% on his taxes.