Paying with cash is a good way to save money for a couple of reasons. The first and most obvious is that you will only buy what you have the money to pay for at that moment. People who own and use credit cards often spend more because it’s easy and they can put off paying the total bill for months. Unless you pay off your credit card every month, you will end up losing a lot of money in interest charges.
Another reason to use cash is that it gives you more bargaining power. Granted, you’re probably not going to be able to negotiate at the grocery store or gas station. However, some would argue that the price of almost any item is negotiable. Merchants who accept credit cards are charged anywhere from 1.5 to 3% of the cost of an item to offer the service. It stands to reason that there may be some bargaining room if you offer to pay in cash.