When you consider all that’s been happening around the globe since the start of the COVID 19 pandemic, it would seem only reasonable for anyone to want to have some more cash than they normally have. Just like how toilet paper was much needed at the start of the pandemic, cash is another item many people feel more comfortable having around. But, is it necessary?
We are in an age where everything has gone digital — an age where electronic fund transfers, online banking, debit, and credit cards are thriving.
Carrying cash around is now optional as credit cards have become a convenient choice. A recent survey from Bankrate showed that under 9% of Americans don’t carry cash and those who carry it, carry nothing more than $50. Apart from the safety, they get to enjoy, paying with cards has more benefits such as the ability to earn rewards and points. Why then is having too much cash not a good option?
It Can Be Easily Lost
One major reason why keeping cash is not entirely a good idea is that it takes up more space in your wallet making it easier for you to lose. Can you count how many times you have discovered that your money, especially those $20 bills, slipped out of your pocket or got accidentally fed into the washing machine?
Well, if you usually carry cash around, that would be more times than you can count or remember.
Cash at Hand is Easily Expendable
You are more likely to fall into the temptation of getting things you don’t need if you’ve got cash with you. There would be a real struggle with self-control if you keep in your leather wallet and cash is the only mode of payment in your vicinity as opposed to paying with plastic. The latter would help you save money.
When you are confronted with items you feel you need, it’s easy for you to easily let go when you realise you’ve got no cash available. It’s a blessing in disguise when you think about it, but it can be terribly annoying when there’s an emergency.
It Can Be Stolen
This is not a subject most people want to talk about. But, even though we can only hope for the best, it’s something that happens daily. When thieves break into a home, their eyes are set to steal any item of value, especially cash.
More often than not, it’s usually an inside job that’s done by people who are close to you or have been invited inside your home before. They know where you’ve kept the money or your valuables. For thieves who aren’t technologically inclined and don’t know how to steal identity or who avoid debit card theft deterrents, cash is quite easy to steal and it can’t be easily tracked.
Cash Can Be Destroyed
Either by fire, water, or some other means, cash can be easily destroyed — especially by fire considering how combustible it is.
During a flood or hurricane, cash can be melted away, and in an earthquake, it can just disappear into oblivion without a trace. Don’t think that putting it in a safe means its safety and existence is guaranteed; cash kept in a safe can still be burnt during a fire, or even permanently buried in an earthquake as has happened before.
There are No Insurances for Cash
If anything should happen to your cash whether it is destroyed or stolen, it just might be gone forever. There is rarely anything that can be done in those cases and even if there’s an insurance policy that does cover your cash, it’s limited in most cases to just a few hundred dollars.
And then there’s the big question of how you can prove your claims to the insurance company that shows you had that amount of money. Sometimes, even leaving money in the bank is more dangerous than you’d expect. The FDIC wouldn’t provide insurance for less than $ 250,000 for every depositor per bank.
When you’re keeping money at home and are certain it’d be more than $250k, make sure to insure it to be on the safe side in case of anything. You can decide to have a million dollars and split into different insurance and be rest assured it is secured.
It’s easy to get tempted to want to have some money around, but you should only fall for that when your family is in an emergency. You could also invest your money for good interest if it’s kept away in a bank or some investment.