Is Cash Carrying an Outdated Choice?

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.

Cash

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 the need for more cash. Sometimes, I regret 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.

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How To Embrace A Financially Healthy Life

Leading a financially healthy life is every common man’s dream. This is something that everyone wants. But not everyone is blessed to have such a comfortable life. You have to smart about your choices, good in planning and always pave the way for saving to embrace a financially trouble-free life.

Financially Healthy Life

But the important question that comes into our minds is how to do it?

Ignorance is not bliss

We may have heard that ignorance is bliss but it is not so when it comes to our finances. This is one primary unhealthy habit that keeps us off our target when our finances aren’t in the best situation. I accustomed swipe the charge account credit and ignore the balance thinking it’d all estimate. Keeping tab over all our financial matters is very crucial. Ignoring it is nothing but a fool’s identity. This is often one of the worst habits that people often hold on to. Ignorance doesn’t make things go away, it just piles higher and makes things difficult and causing a lot of stress.

Being lazy isn’t an excuse

Yes, we do feel lazy at times, don’t we? People are sometimes deliberately ignorant toward their budget because we are too lazy to pay attention. Being on the right track requires a lot of effort than we think. We need to maintain our budget on a daily, consistent basis so that we don’t end up playing catch up.

Making excuses should not be a habit

Avoiding things and making excuses for it is rather very common in people. We all have been there at some point or another and the excuses work for a moment, however, they do nothing to make our financial status any better. In fact, excuses only worsen the situation. Thoughts like starting a budget when we have plenty of money or who has time for budgeting should not come in our way to plan a budget. Don’t just say that you are busy, you always have the time just set your priorities right.

Don’t hesitate to plan and schedule

Sometimes, in all the action we tend to forget to remember the vital things about our finances as we didn’t write it down anywhere. A good way to remember such important things is to schedule it on a task list or write it down on a note as a reminder to see daily or weekly; no matter what works for your family’s budget. Having an in-depth knowledge of your finances is needed. If you cannot grasp any area of your budget, sit back and work out the problems. This may provide you with the overall image of what you have in your possession.

It takes time to develop the habits to get independence in your finances with a budget system. With careful attention, adjustment and learning from our mistakes, it’s a journey that sometimes can reap several rewards.

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