Why I’m Switching To A Cash Basis

With all the talk about inflation and higher prices these days on just about anything (newsflash: we just ordered propane for our home tanks. Last year it was $1.69 a gallon. This year it’s $2.89 a gallon. Yikes!) we have decided to stop using our credit cards for anything. Currently, we have about $3,000 charged up from last month for all the home improvements and traveling we did. I was just about to pay my charge cards in full when I decided against it.

Please note, we haven’t paid a penny in interest costs and we have no intention of starting now (especially since our cards charge 17% and 11% respectively, and now with rising interest rates, these fees are going to increase within the next two months). I am giving a second thought to withdrawing any cash out of our savings/investment accounts. Currently, I’m getting 4.21% on my immediate CD’s. Why should I lose out on that? Instead, I applied for a new credit card, designed specifically to handle balance transfers, with NO balance transfer fees and a zero percent interest (0%) rate for 15 months.

This is NO time for me to be using MY money, when at 0% I can use THEIRS.

I’ll pay the new balance off in 14 months vs 15 so that I am guaranteed NOT to incur any interest fees whatsoever. Saving also around $150 because the new credit card has no balance transfer fees for the first 60 days (the balance transfer fees are 5%)

Before anyone starts accusing me of being a credit card junkie or addict, let me show you what I got in the mail a few days ago:

cindi credit score

I didn’t get to have this fantastic FICO score from being stupid with credit. I totally understand the value of being debt free. But I also understand the value of using credit as a tool that benefits ME. Not them! I only do the zero interest balance payoff when I know I have the cash in the bank to back it up should I falter. If I didn’t, I wouldn’t have gotten myself into the fix in the first place!

DH and I are laying off the credit cards for good. DH will keep his for emergencies and travel expenses. I just recently paid off our Lowe’s Zero Interest Balance on our new appliances and next month I’ll be paying off my Apple Computer Zero Interest Balance on my new iMac. My first installment payment due on the new credit card I just got isn’t due till July. Perfect timing. I’ll exchange one new payment for an old payment and my budget will be none the wiser.

At the beginning of each month, I’ll be pulling $500 cash out of my Social Security check. This will allow us $125 per week to spend. Of this amount $25 goes for gas and $100 towards our food bill and misc. Should other expenses pop up, I’ll address them on a need-to-know basis.

Live well and prosper, my friend. Live well and prosper.


  1. I’m just the opposite. We have been playing the credit card game, without a penny of interest, for a decade now. We have honestly saved tens of thousands of dollars on travel costs because of this. But we do pay meticulous attention to every point and every dollar. We are currently sitting on tens of thousands of airline and hotel points. It’s a fun and lucrative game if you do it right. But I do realize that some don’t care to do it.


    • Hi Anne. Whatever works is fine. Sounds like you’re due for a nice whirlwind vacation soon! Lucky you! We’re aiming for a nice Caribbean vacay. All inclusive. I just want to sit and be waited on hand & foot. With unlimited mai tais & pina coladas.
      Have fun! Thanks for your comment.


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