Generation of Cash
How many non-cash payment methods do you know? Factually, they are numerous, but we still need cash. The US Federal Reserve recorded that in 2019 currency in circulation was more than ever before. So why can't we get rid of cash?
Nowadays, cards or mobile payments are available nearly everywhere. Thus, everyone can manage non-cash payments for utility bills, credit repayments, or checks for taxi rides. However, we still need to have some banknotes tucked in our pockets, mainly for the following excuses.
Cash is accepted Nearly Everywhere!
In contrast to your Visa, Master or American Express cards, cash is accepted almost everywhere. There are too many stores that do not accept non-cash transactions and are happy to see green papers for payments. Definitely, these kinds of happenings also have a flip side of a picture, as too many businesses start to accept only plastic cards. The solution to such a diversified attitude is to keep both bills and cards.
Emergency Reserves
Credit cards are pretty convenient to use, they do not occupy so much space in your wallet, and you can block your card once it is stolen. However, they can also be useless when no ATMs are next to you, or when the system of your card provider drops. Of course, no one advises keeping savings under your pillow, but you need to have emergency funds irrespective of your non-cash balance.
Make Your Server Smile
In the US, the theme of tips that customers leave in restaurants or cafes is absolutely another world. You even can show your gratuity by adding some amount to your card receipt when you need to pay for the service. However, do not hurry to do your waiter or waitress a favor in a non-cash format, as the restaurant may easily charge card fees from your tips. Thus, try to leave tips only in cash (if possible) and give your server a big smile.
Save Money
Researchers from MIT discovered that people who use plastic cards instead of cash tend to spend more money on a daily basis. This sort of behavior does have psychological roots. In the case of cash payments, your subconscious mind tries to prevent your wallet from emptiness, as it is direct visualization of your monthly or weekly effort.
Privacy Notice
Nearly no one wants to share information about his life with third-party service providers, but we still do it regularly through making payments using our bank cards. It is a well-known piece of information that virtual identity theft is a pretty widespread phenomenon all over the world. Even businesses sell the purchase data to attract new customers and make money on it.
There is no doubt that cash payments are more secure than non-cash transactions. In simple language, no one can track your cash payments or steal confidential data and promote his business based on illegal behavior.
Virtual Assets Are Low Liquid
Why are savings in cash better than non-cash investments? It's all about liquidity. Bonds, deposits, or stocks are also a kind of non-cash asset that we can convert into cash whenever we need it. However, they are all non-liquid, as we need time to sell them, and what is more important, no one can guarantee that we can get the same price. Please do not consider it as a black advertisement against non-cash investments, but we shouldn't need to underrate the significance of cash while building a long-term financial map.
Avoid Extra Expenses
Running into debt can be a usual happening for those who use credit cards and do not regulate their budget correctly. First and foremost, you can end up paying extra cash beyond the actual price of your purchase in the form of interest. Secondly, you can hurt your credit rating in the case of the non-fulfillment of contractual obligations.
The Bottom Line
Aside from the described reasons, we have to understand one simple fact that time does not stand still, and we need to stay updated. For instance, the overwhelming majority of lenders start to use modern means, such as remote lending, when your physical presence is no longer mandatory.