15 Things You Should Only Pay For in Cash
In today’s digital world, where credit cards and mobile payments dominate, cash still holds a valuable place in certain transactions. Whether for security, privacy, or avoiding unnecessary fees, there are some purchases best made with physical money.
From small everyday expenses to more significant transactions, knowing when to use cash can save you money and protect your financial information. Here are the key items and services that are smarter to pay for in cash—and why it matters.
Used Cars
Buying a used car with cash means no monthly payments or interest stacking up. Dealerships and private sellers may also drop the price if they know you’re paying upfront. Plus, you avoid getting stuck in a bad loan on a car that loses value fast.
A cash budget keeps you from spending more than planned. It’s the best way to drive off without debt.
To learn more: Is a Car an Asset or Liability?
Lottery Tickets
Using cash for lottery tickets helps control spending and keeps you from gambling with money you don’t have. Credit cards make it too easy to buy more than you should, leading to regret later.
A cash budget keeps entertainment expenses in check. If you don’t have the cash, it’s probably best to skip the ticket.
To learn more: Left Hand Itching: Money Luck Superstition Coming to You
Tattoos
A tattoo lasts forever, but financing it shouldn’t. Paying in cash helps you stick to your budget and avoid paying interest on something personal. Some artists even offer a discount for cash payments.
Furniture
Store financing often comes with hidden fees and high interest rates. Paying in cash keeps you from spending more than planned and avoids long-term debt.
Many stores will offer better deals when you pay upfront. In rare occasions, you can get 0% financing, but that doesn’t justify spending more.
To learn more: First Apartment Checklist: Everything You Need to Buy
Rent
Some landlords charge extra for online payments due to processing fees. Paying rent in cash, if allowed, can help you avoid those extra costs. It’s also an easy way to stick to your budget and make sure housing costs stay manageable.
If your landlord gives a discount for cash payments, it’s worth taking advantage of.
To learn more: Is $5000 Enough to Move Out? The Ultimate Guide to Moving Out
Home Renovations
Contractors often prefer cash and may offer better prices for it. Paying with a credit card can add extra fees or high interest if you don’t pay it off right away.
A cash budget helps keep renovation costs from getting out of control. Paying as you go ensures you don’t end up with half-finished work and an empty wallet.
Vacations
It’s easy to overspend on a trip when using credit cards. Paying in cash for hotels, food, and fun activities helps keep travel expenses in check. Some places even give discounts for cash payments.
With a set budget, you won’t come home to a pile of debt.
To learn more: 5 Tips to Save Money for Travel with a Vacation Fund
College Tuition
Some schools charge extra for credit card payments. Using cash or checks can help avoid those fees and keep education costs lower.
If you’ve saved up, paying tuition in cash also keeps you from taking on unnecessary loans. Sticking to a budget for school means less stress after graduation.
To learn more: How to Get Paid to Go to School: 18 Ways to Get Paid to Attend College
Private School Tuition
Many private schools offer discounts for lump-sum cash payments. Paying upfront can save you money in the long run.
It also keeps you from relying on high-interest payment plans. Make sure you can justify and afford the cost of private school tuition for more than just a year.
Tips at Restaurants and Bars
Paying tips in cash ensures your server gets the full amount. Some places deduct processing fees from tips paid by card.
Cash tips are also immediate, helping workers get paid faster. If you want to be sure your money goes where it should, cash is the way to go.
To learn more: Essential Tipping Etiquette: What You Need to Know
Don’t Want Prying Eyes to Know About
Some purchases are better left off a credit card statement. Whether it’s a personal gift or something private, cash keeps your spending discreet.
No paper trail means no one can track what you’re buying. A cash budget lets you keep personal spending under control.
To learn more: How do I talk to my partner about money without starting a fight?
Taxes
Some tax offices or preparers offer discounts for cash payments. Paying taxes in cash also helps avoid processing fees tied to credit or debit transactions.
If you owe the IRS, cash payments prevent extra interest charges from adding up. It’s a smart way to handle an expense that can’t be avoided.
To learn more: 24 Best Ways to Save on Taxes & Keep More of Your Money
Boats & RVs
Financing a boat or RV comes with high-interest loans that last for years. Paying in cash saves thousands in interest and keeps you from overbuying.
Some sellers will negotiate better prices for cash deals. A set budget helps you enjoy your purchase without long-term debt.
Ammo and Arms
Some shops offer lower prices when you pay in cash. Credit card purchases can also come with extra fees or tracking you may want to avoid.
Cash helps keep spending in check while making sure you get what you need. If privacy matters, cash is the best option.
Use Cash for Anything Under $20
Small purchases add up fast when using a card. Paying in cash makes you more aware of your spending and helps prevent impulse buys. It also avoids card fees that some small businesses charge.
This helps to keep daily expenses simple and manageable.
To learn more: Use the Cash Envelope System & Find Success
How Much Cash Should You Have on Hand
It’s smart to keep cash for emergencies, unexpected expenses, and everyday spending. The right amount depends on your needs, but having at least a few hundred dollars set aside is a good start.
Cash comes in handy when cards don’t work or when dealing with places that don’t accept them. A well-planned cash budget ensures you’re never caught off guard.
To learn more: How Much Cash Should I Have on Hand? What Experts Say to Keep at Home
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