Even as more people use mobile phones and debit cards to pay for things, experts say cash will always be king. Hereís why, according to Philip Graves, who wrote the book Consumerology:
- First: Cash never has an ďoutage.Ē Last year, two of the biggest wireless networks suffered outages that affected some customers for more than a day! And certain mobile gadgets wonít work if youíre inside a tall building, underground, or on the verge of having a battery die! But a wad of cash in your hand never needs to be recharged, or be near a cell tower, to pay for things.
- Also, cash always works in an emergency. When disaster strikes, and people are desperate, having a fancy credit card in your wallet isnít going to cut it. Our expert Graves says cash provides, quote: ďthe ultimate safety net,Ē because everyone accepts it Ė anytime, anywhere.
- Another reason youíll always need cash: It keeps you on a budget. Many studies show that people spend less money when they carry cash, because unlike credit or debit cards, you canít overspend cash. Once itís gone, you stop shopping, period! Graves says that makes it easier to set specific amounts to spend each day. Also know this: Most small businesses PREFER cash, because some mom-and-pop shops canít afford to pay the fees that banks charge for electronic transactions.
- One more reason cash will always be king: It makes you more charitable. The Salvation Army may accept credit card donations. But chances are, the homeless guy you pass on the street wonít offer the same service. So when it comes to random charitable giving, cash is still the best option.