Cash or Credit?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When you head to the register, which method of payment do you usually reach for - cash or credit? While some people prefer to hand over a physical bill, others choose to pull out the trusted piece of plastic that can so easily be swiped time and time again. But when it all comes down to it, which of the two is preferred? Is one more valuable than the other? Safer to use? Truth be told, both have their own set of pros and cons, so it truly comes down to which one you, the buyer, feels is most appropriate for your current financial situation. Still not sure though? Below are a few of the benefits of each to help you decide:

Cash

• By paying with cash, you can be a bit more mindful of your spending and prevent yourself from purchasing more than you can actually afford.
• Retailers are less likely to ask you for personal information (such as your zip code or email address) when handing over cold hard cash - that means less time at the register and fewer unwanted emails!
• In a way, you may find that cash leaves you with less responsibility since you don't have to worry about paying any bills at the end of the month - once you hand it over, your purchase is taken care of!

Credit

• Most importantly, using a credit card requires you to make payments by a certain date, and by doing so, you begin to build your credit (which you absolutely need for future financial endeavors such as buying a home).
• Depending on the lender, you may be eligible to receive cash back for some of your purchases. Essentially, that means you can begin to acquire money that you didn't have!
• Rewards points are often offered for every dollar spent. Every time you swipe, you can be one step closer to that dream vacation you've always wanted or find yourself one step ahead when it comes to covering the cost of holiday shopping at the end of the year.

The next time you struggle with deciding if you should pay with cash or credit, be sure to keep the above benefits of each in mind - knowing the impact they can have is the first step to deciding which method is right for you!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.