Do you really need to carry cash in this age of online banking, debit cards, credit cards and electronic fund transfer?
Carrying cash is optional now as other alternatives have become more convenient a choice. According to a recent survey, 9% of Americans never carry cash at all.
Majority of the rest 91% carry less than $50 and almost half of them never carry more than $20. One of the reasons why more and more of people are carrying less and less amount of cash is they now have an option to pay with plastic.
So what have you decided – carry cash?
ATMs are everywhere but what if you don’t have one in your locality? Carrying cash in times of emergencies makes sense. However, the question is how much should you carry?
I come under “$20 or less” category. I manage with it most of the time. Only in rare cases, I feel need for more cash. Sometimes, I regret for not having enough in my wallet but at the end of the month I get to save a lot.
Never carry too much cash – But why?
You may lose it: You can lose cash very easily. Several times, $20 has slipped out of my pocket. I cannot even remember where I lost them.
There is a chance of theft: All thieves are not tech-savvy. They are yet to pick up tech skill to steal one’s identity or mess with debit/credit card. Until then, cash is the easiest asset for them to steal.
You may end up overspending: Temptation of carrying more cash often throws a challenge to self-control of individuals. They have to struggle hard to prevent cash from flying out of their wallet and most of the time, they succumb to temptation. The biggest advantage of carrying no or little cash is you will have no way to make a buy even if you want. This could be a good money-saving technique for you. However, there is a downside of this blessing – you will get frustrated if you really need something and discover that there is no or enough cash to buy.
Always carry some cash – why?
Emergencies surface up all on a sudden and you must have some cash to get over the crisis. If your car suddenly comes to a halt due to technical faults, you need to pay out of your pocket as your insurance company will not reimburse you immediately.
There are both pros and cons of carrying cash. It is important for you to stay prepared for emergencies and also practice more self-control so that money is not drained out for petty purposes.