IMO the main reason the cash economy (not the opposite of long term debt, but rather the opposite of convenience plastic) still survives is the tax benefit of taking and spending cash and not reporting it as income. Now that really seems like cheating. But, of course, in the more general sense cash doesn't have to mean greenback dollars. It can just as well mean a check or even a convenience credit card that is religiously paid off monthly, and I think this is what most of you are advocating here. Some day soon, however, the cold, hard cash economy will be dead, and electronic pay and convenience plastic will rule unchallenged. Then it will be interesting to see how successful most folks are in paying off those charges every month, and how many just can't resist letting them ride.

Lest there be any confusion, despite what I say above, I am a strong proponent of using free and low interest credit wisely. You can talk all you want about your training on Papa's knee regarding frugality and staying within your means, and yada, yada, yada, but when someone gives me his money at no cost instead of my own to use to buy something I want and can afford, I am going to take that offer every time. You don't get to retirement with the funds you need by overspending throughout your earning days, but you also don't get there by being stupid about managing your investments. The value of keeping your own money working for you while you use someone else's for cheap or free shouldn't have to be justified; it is just obvious. Uber-fiscal conservatism that limits your ability to grow your money is no benefit.

I'm reminded of the scene in the movie "Ivanhoe" (Robert Taylor, Elizabeth Taylor) when Ivanhoe is lamenting the difficulty and danger in transporting the ransom to Austria to secure King Richard's release from captivity. Picture a convoy of donkey's traveling a thousand miles overland loaded with gold and jewels... Rebecca's (Elizabeth Taylor's) father says basically, it's no sweat. There are folks in Austria who owe me money. I will just take your gold here and send an instruction (basically a draft or a check) to my debtors to pay Richard's ransom. Ivanhoe's mouth falls open, like, you mean you can really do that. These days, just as then you have to know how to work the financial landscape to your advantage. There is no value to being so conservative you cut off your nose to spite your own face.