Pros & Cons of a Cash Only Lifestyle
Although we are increasingly moving towards a cash-free society, there still remains billions and billions of pounds worth of coins and banknotes in circulation, which suggest that many people are not ready to give up the cash just yet.
While more and more people use electronic methods to make payments such as debit cards, credit cards and mobile payments, a sizeable amount still prefer to use cash for most of their transactions. There are a number of reasons for this and being cash only doesn’t just mean that you are walking around with a bulging wallet or purse most of the time.
What Does Cash Only Mean?
Cash only refers to paying with notes and coins, but it’s not limited to using them exclusively.
The Pros of Leading a Cash Only Lifestyle
For many, using cash for their living expenses is ideal! Here are some of the advantages of using only cash:
It’s Easier to Budget with Cash
By only spending the money you have at your disposal at any given time, you tend to be more thoughtful about what you spend your money on. Planning purchases in advance encourages saving when you know you’ll pay with cash only.
You Don’t Get Into Debt as There’s No Credit
With cash only purchases, as soon as you buy something, you own it. You don’t worry about repaying debts, so you’re much less likely to accumulate debt in the long run.
You Avoid Fees and Charges
While you may pay the same price for a product or service, whether you are paying cash or credit, with a cash only purchase, you won’t have to pay the additional charges often associated with credit cards. They could be fees issued by the merchant or charges and interest levied by your bank or card provider.
Cons of Having a Cash Only Lifestyle
Like with most things in life, there are a number of disadvantages of leading a cash only lifestyle.
You Won’t Build up a Credit History
People who use credit cards and pay them off in good time will establish a pattern of borrowing and therefore can build up a good credit score. By going cash only, you do not have the opportunity to build up a credit history, which may limit your access to credit when you need it.
Cash Can’t be Recovered if it’s Lost or Stolen
If you lose cash, recovering it is unlikely, but you can cancel and stop a lost credit or debit card. If someone uses your lost credit or debit card for purchases, the issuer can recover the money.
You Can’t Reserve Certain Things
To book things like hotels and car rental, many companies will insist that you use a credit card or debit card. This is to give them some form of security if you cause damage to a hotel room or rental car that they can recover the expenses needed to cover the damage.
They will need to make sure that you have enough of a balance on a credit card or debit card to cover such expenses, usually between £300-500.
Alternative Accounts with Suits Me
Here at Suits Me, we offer much more than just a basic prepaid debit card. Our accounts are personal accounts that work similarly to a traditional bank account. You’ll gain access to an online account and our mobile app, where you’ll be able to manage your money on the go, 24/7.
We offer a whole variety of banking-like features including:
- The ability to set up standing orders and manage direct debits,
- Send money within the UK via a transfer, international transfers are available via a partner in the Suits Me app,
- Gain access to our exclusive cashback reward programme where you’ll automatically get a percentage of your money back when you use your Suits Me debit card with our retail partners.
Opening a Suits Me account takes 3 minutes and you’ll gain access to your online account immediately so you can start managing your money. We don’t ask for proof of address or run a credit check. We accept 99.8% of all applicants – so if you’re looking for a suitable alternative solution apply today!
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