Variados billetes de euros

In defense of the use of cash

When was the last time you paid something in cash? Today, we have more payment methods at our disposal than at any other point in the past. There are plenty of payment options like Apple Pay or Google Pay, we have credit and debit cards, bank transfers, Buy Now Pay Later services, and others. Despite the growing popularity of these payment methods, in this article, I want to invite you to consider using more cash. To make my point I explain four of its benefits.

Cash ensures your freedom and autonomy.

Banknotes and coins are the only means of payment that we can use without the need for third parties. To pay in cash you do not need any equipment, electricity, or internet, which means that it can be used even if there is a blackout, or your credit/debit card or mobile is lost. So even if you don’t use cash as your primary payment method, it’s a great backup when other options are interrupted or unavailable. Moreover, using cash makes it harder for governments or companies to track how you use your money.

Cash offers you a level of security that digital money cannot.

Cash is safe from cybercrime, fraud, and to some extent counterfeiting. Using cash allows you to not worry about being hacked, which is a growing threat. Of course, it is also true that cash presents its own security problems, such as being stolen and preserving the bills in good condition. Therefore, a balance between digital money and cash is the most prudent option.

Using cash can help you save money.

Researchers have found that paying cash (physically handing over the money and watching it disappear) is painful. Using cash to carry out your transactions can help you better control your budget. This is because you will think twice before making an unplanned expense. Simply withdraw a predetermined amount of money for the week or month and commit to spending only that amount.

Paying cash can help you lose weight.

By using cash, people tend to make fewer compulsive purchases. Studies have shown that people who pay in cash spend less on sodas, candy, fast food restaurants, and other similar places where we usually buy on impulse. And by consuming less of these types of products, people lose weight.

Many people feel comfortable making all their payments with digital methods. If you are one of them, I am not saying that you must radically change that habit. I am just suggesting that you tweak a bit. 

  • Store in your house a cash equivalent to one to three months of your average monthly expenses. 
  • Carry a minimum balance in your wallet, for example, €50 or €100. 
  • Start paying some transactions in cash, for example, all your expenses related to eating out.

After a few days or weeks, reflect on whether you noticed the benefits described above. I am sure that you will achieve positive results, and you will stick to using cash to a certain degree.

Leave a Reply