We live in a digital world. No one is denying that. The financial tech industry is constantly developing new ways for consumers to spend money without cash.
But we don’t live in a cashless world yet. No one suggests that you carry thousands of dollars around with you at all times. But it may behoove you to carry some cash on you at all times for the sake of convenience.
Depending on your financial lifestyle, expenses, and personal budget, you should carry anywhere between $75 to $300 at any given time.
Remember to exactingly calculate how much you should carry on you based on your lifestyle, expenses, and budget; don’t just choose an arbitrary number.
Here are three reasons why it’s a good idea to always carry cash.
Insurance against tech failures and emergencies
But how many times have you encountered an ATM with an “out of order” sign? Tech failures at airport terminals are a common problem.
If you encounter stores and merchants with malfunctioning or just sketchy-looking credit card readers, then you’re prepared. And you never know when you may need to hail a cab or pay for a car towing serving in the middle of the night.
Gas station benefits
Gas stations have to pay extra fees whenever customers pay for gas via credit card transactions. You may pay 2% to 3% extra of your total transaction to pay for the credit card fee.
Meanwhile, the gas station may have to pay about $0.10 per every gallon of gasoline they sell to satisfy their credit card transaction fees.
Gas stations are legally entitled to charge you more for gas purchases whenever you fill up and pay through credit card transactions.
Save yourself some money in the long run and get into the habit of paying for your gas with cash.
The average transaction fee for most credit cards ranges anywhere between 1.5% to 3.5%.
That means that the credit card company charges the vendor a fee between 1.5% to 3.5% for every transaction you make, which drives up prices for everything and everyone.
You should keep a budget and not buy things impulsively, but you are more than likely to make a few small purchases as you go through your day.
So keep a few dollars in your pocket. Why would you break out the credit card to buy a bottled drink and some gum?