The great money debate comes down to whether it’s better to pay for things with cash or credit.  Some people strongly argue that cash is better, while others see the advantages of credit.  As with many debates, it really comes down your personal situation and preferences.  Which one are you better at managing responsibly?

Cash certainly has some obvious disadvantages to it.  First, if you lose it or it is stolen, you’re out of luck.  There’s no way to track it down, much less prove that it was yours to begin with.  It’s highly advised not to carry too much cash on you at once.  You make yourself a target for theft, especially if someone catches a glimpse of how much you may have.

Credit cards, on the other hand, can be the way to go for large purchases.  You certainly wouldn’t want to purchase a new computer with cash, and that’s assuming you have the funds available in the first place.  With a credit card, you can make monthly payments.  Also, even if it is stolen, credit card companies have many programs in place to help protect you and your identity, and it can be relatively easy to have any fraudulent charges removed.

You also can have the benefit of rewards programs with credit cards, where you can earn things like iPods, store gift cards, and airline miles just for using your card for your purchases.  Of course, the disadvantage to the cards is the inevitable interest rate if you are unable to pay your monthly balances in full.  A $100 purchase placed on your account could cost you another $100 over time.

It can also be easier to overspend with a credit card.  With physical cash, you can watch your funds depleting.  You know when you have to stop spending.  When you’re using a credit card, you generally have a high limit, and without diligently tracking your expenses, it’s easy to go overboard and run into a not-so-fun surprise when your monthly statement arrives.  Debit cards can create the same problem since they function similarly to your credit card despite coming out of your checking account.

If you know you tend to overspend and you’re not purchasing any large items where financing would be advised, cash might be a better option for you.  If you’re able to pay your credit card bill in full or at least meet the minimum payments and you take full advantage of the rewards program, go ahead and use credit.  It may be best to find a good balance between both.  Try cash for everyday expenses and leave the credit card for large purchases and emergencies.

Chances are you have a checking account and a savings account these days.  Maybe you even have a 401(k), a money market account, an IRA, a flexible spending account, etc.  The list of accounts that can house your money is extensive, and a recent development is a health savings account, or HSA.  This is one that raises many questions, as well as much debate.  You can get a health savings account through banks, credit unions, and possibly your employer.  Here are some important facts:

• You qualify for an HSA if you are currently enrolled in a HDHP, a high deductible health plan.  According to the US Treasury’s website (www.ustreas.gov), your deductible must be a minimum of $1100 for an individual and $2200 for a family.  They want you to have a high deductible because that means a lower premium, ideally leaving you extra money to deposit into your HSA.
• You can use the funds to pay for any eligible medical expenses.  Usual categories include your deductible and coinsurance, dental care, vision expenses, chiropractic visits, eyeglasses and hearing aids, related transportation costs, etc.
• All funds deposited into the account become your property, regardless of who the depositor was.  The best example is your employer.  If you participate in a health savings account through work and your employer makes contributions, that money is officially yours, and it is not subject to income taxes when it is deposited.
• The funds can accumulate and roll over from year to year.  They do not expire if not used by a certain point.
• If you end your coverage or switch jobs and your new employer does not offer an HSA, the money in the account is still your property and may be used for medical expenses.  You just cannot make any more deposits.
• If you make any withdrawals for non-medical expenses, the money used is now subject to income tax as well as a 10% penalty.  (This is good reason to make sure you submit all documentation when you pay for medical expenses, and keep copies for yourself so there is little to no chance of dispute.)  The only exceptions to this rule are if you are officially over 65 or you have become disabled.

The debate surrounding health savings accounts revolves around the idea that this plan only benefits young, healthy people, and that pushes the chronically ill people that truly need the financial assistance towards insurance plans which may or may not provide all the coverage they need.  But this is a decision you need to make for yourself—would a health savings account be worth it for you or would your money be better off in a regular savings?  You can visit the US Treasury website for more detailed information, and research people’s opinions to become fully informed and come to your own conclusion.

Do you have any regrets?  How about dreams that just haven’t come true?  Maybe you blame it on your circumstances, a lack of proper training in years past, or a track record of failures.  It’s time to change that.  You can reach your potential in any area: at home, at work, in relationships, etc.  It’s never too late to get going.

You’ve probably heard the old saying about the lottery: you can’t win if you don’t play.  That holds true for almost anything.  If there’s something you want in life, whether it be a promotion, a better home, or a positive relationship, you need to take the steps necessary to get there.  And don’t say you’re going to try.  To really have a chance at the results you want, it’s time to start doing.

Chalene Johnson, the creator of the popular DVD exercise programs Turbo Jam and ChaLEAN Extreme, is currently running a session of YouTube videos from her motivational speaking seminars.  In one of them, she makes a great point about how reaching your potential is all about perspective.  If you say or do something that causes 20 people to tell you how amazing it was, but one person only has a negative comment, what do you normally focus on?  If you’re like most people, that one negative comment is enough to ruin the rest of your day and cause you to avoid doing whatever it was that prompted the comment.

If you focus on the positive, you’re more likely to have positive results.  For example, if you’re about to go onstage to perform or give a huge presentation and you walk out thinking you’re going to trip and fall on your face or mess up somehow, you probably will.  If you believe you’re going to do well, you’ll have the poise you desire.  You alone can choose what you place your focus on.  Your perspective can change something as simple as going to a party; if you think you’re going to have a miserable time, you probably will because you’ll be giving off a negative vibe.  If you expect to have fun, people will be attracted to your positive energy.

Of course, it’s not realistic to be 100% positive all the time.  No matter your outlook, you will still encounter failure, and there will always be instances when you just need to let off steam, cry, or mourn, and this is healthy.  It’s how you handle yourself in these situations that will make the ultimate difference.  When you let that negative energy consume your everyday life, that’s when you have a problem.  It may sound cheesy, but it’s true that you are your greatest obstacle to your own success.  If you stay focused on the negative, you’ll never learn from your failures or be able to make a change, so where is your motivation going to come from?

There are no handouts waiting for you.  Only actions will produce results.  Read books.  Take classes.  Network.  Find every last bit of helpful advice that can help you reach your goals.  Ignore anything that you know doesn’t apply to you or has the potential to crush your hopes.  You can dream and wish all you want, but nothing is going to happen until you get up and make it happen yourself.

Don’t let yourself get too comfortable in one place for too long, especially if you know that’s not where you want to be.  If you notice yourself falling into a routine that’s sucking the life out of you, make a change.  It might be scary, but overcoming your fears is a key step in reaching your goals, and it feels good to make that accomplishment, too!

There is a wealth of information available to help you, no matter what you’re hoping to be successful in, so you have no excuses not to follow the path to your goals.  A little homework and determination can go quite a long way, whether you’re dreaming big or small.  Stay realistic, but not comfortable, and stay active!