Log InJoin 

5 Reasons Why Cash Is Still King

5 Reasons Why Cash Is Still King

Technological advancements have been great for bringing online shopping to the forefront and providing an increased number of payment options for consumers in general. It would be reasonable to think that between credit cards, debit cards, PayPal accounts, online banking and more that cash is on its way out as an anachronistic relic of a bygone era. This however is not the case, and cash is sure to be around for the foreseeable future due to the many benefits it offers. If you think cash is no longer necessary, lets examine the scenarios where it may be beneficial to carry a few greenbacks on your person.

1. It's Quick

With the exception of payment systems which use RFID technology and can deduct a purchase with a wave of a hand, cash is still the quickest way to pay for a good or service. Every consumer has probably been in the situation where they were in a hurry and standing behind two or three people fumbling with a credit card or debit card trying to remember their PIN and finally sliding the receipt and card back into their wallet or billfold. Walking up to the checkout counter and pulling two $20 bills out of a wallet and handing them to a cashier is still quicker than swiping a card, entering a PIN or signing a piece of paper.

2. It's Universal

Cash is accepted everywhere. And I literally mean everywhere in the totality of human existence. If there were a convenience store on the moon, at a minimum they would accept cash as a form of payment. Anyone who has ever traveled overseas knows the power of cash, especially currency in US denominations. This is why it's recommended to carry a minimum of $20 on you in a secret place at all times because no matter what situation you're in cash will always come in handy.

3. It's Anonymous

The one significant drawback with multiple forms of electronic payment is that every purchase you make is tracked. This consumer purchasing behavior data is often shared with other businesses and advertisers. You don't have to be paranoid to be concerned about significant others, your bank, other corporations and the government wondering where you go and what you buy. If you want to stay off the grid then carry a few hundred dollars with you and pay for gas, meals and other small purchases out-of-pocket.

4. It's Simple

Most consumers who rack up, and then have to pay off, excessive amounts of debt get into their respective situations because of easy access to credit. Not only is easy credit dangerous but it also complicates most consumers lives financially. Customer usage agreements, privacy notifications, fraud detection phone calls, authorized users, personal identification numbers and more are all associated with more sophisticated forms of payment. If you want to keep your life simple then stick with cash.

5. It's Self-Limiting

Cash is the primary tool used when creating a household budget because you can only spend what you have available. A tried-and-true technique for maintaining a successful budget is to take cash and put in individual envelopes for household expenses, food, gasoline, entertainment etc. Debit cards should also be avoided since they pull money directly from a checking account without consideration for its use. If you want to go to lunch on Thursday afternoon and you have no more cash in your food envelope then it's going to be Ramen noodles or potatoes for you. It's hard to spend what you don't have.