Having cash on hand can be a great way to make sure you’re never in a financial bind. While it’s true that most of our transactions are now done electronically, there are still times when having physical money can come in handy.
Whether it’s for an emergency fund or just for convenience, here are six reasons why having some cash on hand is sometimes better than relying solely on cards and digital payments.
Emergency Funds
Unexpected expenses can pop up at any time, and in those cases, having cash on hand is ideal for covering the cost. Whether it’s for a repair to your car or home, or even just a few extra dollars here and there to get you through until payday, having cash can help give you peace of mind that you have the means to cover basic costs.
Additionally, if your power or other utility services are about to be cut off for lack of payment, you often must pay in cash to get the service restored. Or if you need to quickly rent a hotel room or purchase tickets for an event, having cash on hand can help you get what you need without having to wait for it to be approved by your bank.
No Card Accepted?
While most establishments and businesses now accept debit and credit cards, there are still some places where cash is king. Whether it’s a small business or a street vendor, having cash on hand can be invaluable for making purchases when your card isn’t accepted.
On the other hand, for some real estate projects, banks and lenders may require a certain amount of cash upfront to secure the loan. Having access to these funds can be vital for taking advantage of investment opportunities that arise, so make sure to find the perfect selection of hard money loans. These are short-term loans that are backed by tangible assets, so having cash on hand can be the difference between a missed opportunity and a successful investment.
No Service Fees
When paying with cards or digital payments, many businesses charge an extra fee for card processing and service fees. This is especially true when using credit cards as they often come with a higher fee than debit cards. On the flip side, paying with cash will typically save you money as there are no extra service fees added on.
Furthermore, if you’re traveling abroad, your cards may not be accepted in certain countries or regions. That’s why having cash on hand is the best way to ensure you have a reliable form of payment no matter where you are.
Privacy Protection
When paying with plastic or digital payments, it can be harder to protect your financial information from theft or fraud. But when paying with cash, you don’t have to worry about any of that since it’s much harder for someone to access your account or information.
For instance, if you’re concerned about someone tracking your spending habits, cash can be a great way to protect your privacy and stay out of the spotlight.
Better For Your Budget
When using physical money, it can be much easier to keep track of what you’re spending. Not only is it easier to see how much money you have left in your wallet, but it can also help you better manage your budget.
On the other hand, when using cards or digital payments for every purchase, it’s easy to get carried away and overspend. But if you’re relying more on cash, you can easily keep track of how much money you have available and make sure not to overspend.
Avoiding Interest
If you’re using a credit card to pay for your purchases, it’s important to remember that when the payment isn’t made in full each month, interest will be charged. This can add up quickly and cause financial hardship down the line. With cash on hand though, you never have to worry about paying more than you can afford.
Additionally, if you’re able to pay for larger purchases in full upfront, like a vehicle or home repairs, you’ll save yourself a lot of money over time by avoiding the interest that would’ve been charged if you had used your credit card instead.
As you can see, having cash on hand can be very beneficial in many ways. From avoiding service fees to protecting your privacy and helping you better manage your budget, cash is still king when it comes to making payments.
Additionally, if you’re able to pay for larger purchases upfront with cash instead of using credit cards or digital payments, you’ll save yourself a lot of money over time by avoiding interest charges.
