I used to be tempted to spend every single cent I had. Now though, I’ve come to appreciate the value of having cash on hand. When you calculate your monthly budget, you should always budget out enough cash to have a bit of cash on hand. Not only does this help you control your spending and stick to your budget, it will also ensure you have the cash when you need it. Something about having to spend cold, hard cash is such a different experience mentally than simply swiping a debit card.
7 Reasons Why It’s Important to Keep Cash On Hand 1 of 8
Click through for 7 reasons why you need to keep cash on hand...
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Transaction Confidence 2 of 8
If you have ever had your credit card or debit card denied for lack of funds at the register, you know how horrible it can make you feel. With cash, you are more likely to calculate how much you've gathered in the store to make sure you can pay for it without a problem. You'll never have to worry about your cash being declined either.
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Mom and Pop Shops Don’t Always Accept Cards 3 of 8
There are some small businesses that just can't afford to have credit card processing accounts so they only accept cash. If you only have plastic, you may not be able to make purchases in some locations. Which, let's be honest, might be a good thing if you've got yourself into trouble with over-spending in the past.
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Avoid Meeting a Minimum 4 of 8
Some vendors will accept credit cards, but only if you make a minimum purchase. If you are running into the store for a pack of gum, you may not be allowed to use your credit card for the purchase without buying more items.
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Electronic Blackouts Happen 5 of 8
While technology can be convenient, it is not always reliable such as when the power goes out or when technology goes bad. This means you will not be able to withdraw cash from the ATM or use your credit cards for purchases. Good old cash always works in these situations.
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Tipping/ Donations 6 of 8
When you are out on the town, it can be embarrassing to not have a single dollar to tip the bartender, wait staff, or cab driver. Always keep small denominations on hand for such occasions. If you happen by a charitable organization collecting cash, it's nice to know you have a few bucks in your wallet to give to those in need.
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Handy for Quick Gifts 7 of 8
When a birthday or other special occasion comes to your attention, you can throw some cash into card or donate to the office gift pool. Having the cash on hand makes it easy to participate without having to write a check.
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Skip the Fees 8 of 8
By taking out a lump sum of cash on every payday, you can avoid additional fees for using the ATM to withdraw your cash on an as-needed basis.
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