We’ve all done it: we go to an event (say, a high school football game), it costs money to get in and, oh by the way, they don’t take debit cards. We flip open our wallets and see one of the worst sights you can see: an empty cash compartment.
While not having the $3 they’re charging to get into the game is a minor annoyance, there is a larger reason to carry cash: it is, far and away, still the king of purchasing power. Think about it; there are limitations on what businesses take debit or credit cards, but everyone gladly accepts cash.
Sure, carrying cash does have a few pitfalls attached to it, like carrying change. But here are a few reasons why those minor pitfalls are completely worth it.
It’s instant- there’s no waiting for cash to mature or trying to find the best time to buy or sell it. Cash is always there, ready to be used for any purchase. You can literally have a shoe box full of cash in the event of a black out if that’s what you want!
It’s liquid- cold hard cash isn’t tied up in investments, stocks, bonds or anything else. It’s readily accessible and not subject to losses like investments.
It’s great for emergencies- everyone should have an emergency fund set up, either physically with bills or in an easy to access savings account. It can mean the difference between making it through or going under during medical emergencies or a loss of job.
It’s great for larger purchases- lenders are requiring more and more for down payments on loans, and having more cash on hand can give you an advantage when home hunting. Using cash for larger purchases like cars and televisions can also give you a little bit of room for negotiation, and some businesses offer discounts for paying in all cash.
The fact is, no matter how convenient debit cards and online payments are, cash will always be the root for all transactions. To set up a checking or savings account to hold your cash, simply come by any Security State Bank today!