Art of Life/Donna Parker
Are You Ready For A Cashless Society?
In a many ways, we are living in a post-cash era. We make day to day purchases using debit cards. We split dinner bills with our friends using instant cash exchange apps like Venmo. And of course, we do much of our shopping, bill-paying, and socializing online. At this point most of our payment information is just saved in our computers and smartphones. So what is even the point of cash if you are not running an underground gambling ring?
Well, it turns out there are actually a lot of really compelling reasons to keep a healthy supply of cash on hand at all times. There is a certain independent financial security in keeping an emergency stockpile of dollar bills at your ready disposal that simply cannot be replicated by any other method of payment. Cash affords a type of liquidity that remains pertinent even in times of economic uncertainty and sociological calamity in a way that makes it the single most valuable asset that an individual or business can possess. Of course, it is neither practical nor possible to exist in a world of cash only.
However, it is advisable that you do have immediate access to a stash of cash at all times. Having cash on hand to cover unexpected expenses is an important part of any savings plan. A general rule is to have enough money safely set aside and readily accessible to cover three to six months worth of expenses, although this exact amount will vary depending on your financial situation. When we say at all times, we mean that it is advisable to keep a modest sum of cash on hand as well as a modest sum in your car if you drive one regularly, as well as keeping a more substantial sum of cash stored somewhere safely and discreetly in your home.
I bet you are thinking, “Tapping my phone, card or smart watch is so easy, why would I bother using cash? It is so inconvenient.” You may be right; it is inconvenient, but what if it is worth the effort? No one expects you to use cash for everything straight away. Have a quick read and decide for yourself.
What impact does using cash have on small to medium businesses?
- Businesses save money instantly on transaction fees.
- They have more control over their profits.
- If you can help save that business money, they are more likely to keep staff employed and give back to their local community.
- Small to medium business is an integral part of keeping your local economy and community thriving and growing.
What is wrong with a cashless society?
- Cash jobs on the side will no longer be an option, which creates economic hardship and higher debt. • Tech companies have invested heavily in making electronic transactions secure but hackers are always one step ahead. In a world of 100% electronic payments, the risk of falling victim to fraud rises significantly.
- If cash dies, your location and purchases will be tracked automatically. You will not be able to opt out or unsubscribe.
- If your are on any government funding, they could restrict you from spending that money on certain things that the government does not condone.
- Cash allows you to make anonymous purchases or donations. If cash dies, there will be no such thing. • People in abusive situations are often financially dependent on their abuser. If cash is removed, their way out will be that much harder or close to impossible.
Furthermore, what are the technological implications of a cashless society? We will become reliant on technology every day. If you want access to funds, you will need the latest devices and software to enable payments. If you are not a very tech savvy person, this could become a big problem. It is also extremely expensive and inconceivable for some households. Cash protects you from being at the mercy of electronic forms of payments during power outages and looming high energy costs. Finally, you will not be able to leave your home without some sort of device.
If, instead, you are looking for a few solid justifications for always having cash at your fingertips, read on…
- Tipping for services
- Some places still only take cash
- Emergencies happen
- Your card may not work everywhere
- Toll booths
- In case of a blackout
- Store discounts
- Protect your privacy
