Reasons You Should Be Using Cash

In our society today, most of our wallets are filled with credit and debit cards. Although cash can be viewed as dated and more difficult to carry around, it has various benefits today.

Privacy Reasons

One of the most beneficial aspects of using cash is that it can offer more privacy. When you use any credit or debit card, data will be stored. This includes all of your transactions, withdrawals, and deposits. This data may seem harmless, yet the government or hackers can easily see this information. The government seeing your banking information should not be negative thing, yet if you have had bad credit or more significant transaction amounts, this can limit actions on getting loans or other financial assets. Additionally, hackers can use the information from your cards to hack your account. When you use cash, though, none of your transactions can be tracked.

Emergency Situations

At one time or another, we all are put into emergencies. There are many experiences where using a card is not an option, and cash is necessary.

Consider a few of these common scenarios:
-You lose your credit/debit card
-There is a problem with a card machine/your card isn’t accepted

-A store only accepts cash

Having cash on hand can help if you are in an emergency and need to pay for something quickly. It can also assist in avoiding being in a challenging situation.

Discounts

This is one of the best benefits of paying with cash. There are many companies that offer discounts if you pay with cash. These discounts can be pretty good, sometimes taking off 10% of a purchase. Of course, you will need to do your research and see what stores have this discount option. You can be shocked to find that you can save quite a bit of money every month by paying in cash and receiving discounts.

Avoid Debt

Financially, using cash instead of credit is the number one way to avoid debt. Spending money with a credit card is very simple, and you can easily forget how many purchases you make. This can quickly lead to a large amount of debt, affecting your credit score. Using cash on your everyday living purchases and shopping trips is the most efficient way to avoid debt. This will make your financial life more straightforward, yet it will also ensure that your credit and financial score stay intact.

Not All Businesses Accept Cards

In spite of the fact that credit cards are most common today, there are still some businesses that only accept cash. This will typically include small companies, family-owned businesses, and other rural services. Many of these places may only have a large enough budget to accept cash. If you shop at a store and discover that they only accept cash after you grab all your items, it certainly can be a large hassle. To ensure that you are always prepared for the unexpected, make sure that you have a good amount of cash.

If cash is not your go-to when shopping or making transactions, then take the time to consider the pros in your life. Although you most likely will not use cash for every financial purchase in your everyday life, incorporating it into a specific part of your life can have a tremendous financial effect.

Please reach out to us if you have any questions about using cash in your day-to-day life!

Sources

-Elliott, Megan (2018). 11 Good Reasons Why Cash Is Still King. Wal St Watchdog. Retrieved from https://www.wallstwatchdog.com/money-career/good-reasons-why-pay-cash/

-Finance Monthly (2019). 5 Reasons Why We Still Need Cash. Retrieved from https://www.finance-monthly.com/2019/12/5-reasons-why-we-still-need-cash/