YOU NEED PHYSICAL CASH

 

 

This topic will only cover the reasons you need to make physical cash available at all times.

We will all agree that it’s unwise to keep a huge amount of money around you. Still, you need to have a reasonable amount of money at every point in time. You never can tell what will happen.

 

With that being said, here are several reasons why someone might choose to hold physical cash:

 

Convenience:

Cash is widely accepted and can be used for small transactions, such as buying a cup of coffee or paying for parking.

 

Privacy:

When you use cash, there is no electronic trail that can be traced back to you, making it a more private way to make purchases.

 

Emergency situations:

In the event of a power outage or other disruption to electronic payment systems, cash may be the only way to make purchases.

 

Cultural or personal preferences:

In some cultures, cash is preferred over electronic payment methods, and some individuals simply prefer the tangible nature of cash over digital transactions.

 

Budgeting:

Some people find it helpful to use cash for budgeting purposes, as it allows them to physically see how much money they have left to spend.

 

In today's post, we will look at the role physical cash plays in budgetary control.

 

Using Cash as a Budgetary Control Measure

Using cash for budgeting purposes can be a helpful way to stay on track with your spending, as it helps you to avoid overspending. Here are some ways to use cash as a means of budgetary control:

 

Determine your budget:

Start by figuring out how much money you can afford to spend in a certain period, such as a week or a month. Make a list of your expenses and prioritize them.

 

Allocate cash:

Once you have your budget in mind, withdraw the amount of cash you'll need for your expenses. Divide the cash into different envelopes, each labeled with the expense it is designated for, such as "groceries," "entertainment," or "gas."

 

Stick to your plan:

When you go out to make a purchase, bring only the envelope with the cash you've allocated for that expense. This will help you avoid overspending and stick to your budget.

 

Track your spending:

Keep a record of your cash purchases and compare them to your budget regularly to ensure you're on track. You can do this by simply jotting down each purchase you make in a notebook or a budgeting app.

 

Adjust your budget:

If you find that you're consistently overspending in a certain category, it may be time to reevaluate your budget and adjust it accordingly. The goal is to find a balance that allows you to live within your means and achieve your financial goals.