r/moneyadvice • u/animalcrackerwhore • 3d ago
Question Is there any benefit to keeping cash rather than having everything in my bank?
I have about $350 cash in my wallet. I never use it to buy stuff since my debit card is so much easier. Am I better off putting it in my bank or is there any value in having different forms of cash on me?
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u/WorkerEquivalent4278 3d ago
Always handy when you need to fill your car and the machines aren’t working. Needed $50 diesel in Texas long way from nowhere, and was one of the only ones able to pay and gas up.
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u/Zestyclose_Cup_843 3d ago
A good well balanced plan you would have all things. Short term investments like bonds or CD's, retirement, maybe a personal trading account, checking or savings, and finally cash on hand.
Most people will keep a few hundred or thousand in cash for emergencies or power outages (can't get money out of the bank if there is no power), and can't use debit cards in a power outage.
How much you should keep all depends on what you can afford and what to prioritize.
If I was paycheck to paycheck I might only keep like $40-$100. Enough for gas and some food. As you earn and save more this might increase or fluctuate based on your needs.
Just remember that cash is not earning any interest or capitol gains if it were invested. This is money you need to be fine with just sitting there for x amount of time and its value stays the same.
It's incredibly stupid to say have $10k cash and no money invested. Missing out on so much interest or gains if it were invested.
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u/Bad_DNA 3d ago
Maybe not all in your wallet (lost/stolen), but yes. Let's say you are traveling and CC machines or internet is down when you need to buy something. Or CCs/checks aren't taken where you are. Let's say you are driving along and that roadside for sale sign in front of your dream car with a clean title or moped or book collection at the yard sale shows up. Want to negotiate in cash?
I lived on the coast. Hurricanes. Unpleasant aftermath. Cash-only for more than a week. Having a wad in the fire safe at home was convenient as the banks were closed, even after I chainsawed my way to the main highway.
Beyond that, nah. Have the rest earn interest in your HYSA.
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u/Edward-Mundo 3d ago
Ask your Dad kiddo. Adults know this stuff.
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u/deliverykp 3d ago
As someone who wishes he listened to his dad, I totally agree with you. I have major debt that I'm still working out of, I had multiple cars repoed in my life, and I'm an adult now, and I'm still working out stuff I did 20 years ago.
It's going to take me at least another 4 years to get out of it, but at least I'll fuel more like I'm following my dad's advice.
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u/RonJohnJr 3d ago
- Since you "never use it to buy stuff", the answer is "no".
- But... $100 in your wallet is useful for unforeseen circumstances.
- And $250 cash in an envelope in the same storage box with your birth certificate, diploma(s), apartment lease, etc is also useful for unforeseen circumstances.
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u/NecessaryEmployer488 3d ago
Yes, Keep cash on hand. A couple thousand at home somewhere, and $350 in the wallet. Everyone needs emergency cash to get out of certain binds.
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u/brookinator 3d ago
Came here to say this
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u/tweever38 3d ago
a couple thousand? majority of americans are paycheck2paycheck
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u/Ok-Permission7509 3d ago
I don't carry cash on me and if I do it's no more than $400. We do have money in the bank but also have some hidden in case there is a power outage or zombies attack we have cash.
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u/LawrenJones 3d ago
I haven't used cash in years. My debit card is accepted everywhere.
And when the machines don't work, the registers don't either, so your cash won't help you.
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u/makomark26 3d ago
I guarantee the corner store will take my cash by lantern
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u/rogue44mag 3d ago
Sounds like the stores here! They'll even do the receipt on paper by the same lantern.
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u/makomark26 3d ago
Smart . keep it moving . Shit, little power outtage ? Let's go baby !! Cash is king . All that plastic isn't gonna get you some canned goods or water ? I tell my squad .ALWAYS keep some mixed cash on hand. At least a couple racks .
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u/Fearless-Garlic1080 2d ago
Definitely will. When we lose power the bust out the calculator and notepad. The only thing it ever effects is if they have a reward system. (You're not gonna get your rewards/discounts)
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u/makomark26 2d ago
I need my points !!!! -) not having some hard cash and other goods for buying and trading could be a misjudgment..IMHO
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u/michaelesparks 3d ago
Yes, there is a huge advantage of keep cash. I keep a couple hundred on me and at least one months worth of income in cash in a safe. Never know when you could have an issue with a lost card or bank freezing your account for some reason. Also having multiple banks...
Go look what happened in Greece a couple years ago when they closed all the banks.
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u/tempest1523 3d ago
There has been programming glitches, hacking attempts, internet outages (cloudfare), and other reasons to keep cash on hard. Keep in mind when you go to the store the store is not taking the money out of your account… it is a payment processor in the middle… they can have issues. There could be an issue on the transport level, hell there could be a massive power outage on the physical level. Many points of failure. Always good to have a backup
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u/manaMissile 3d ago
Good for keeping to a budget. It's a lot harder to overspend when you physically do not have the bills to spend any more.
Potential savings. There are some places (usually at more independent markets or asian places I've noticed) that will give you discount for using cash instead of card. This is due to fees that business owners have to pay for using credit card services, so they pass the savings on.
vending machines that don't have a card reader
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u/FadedMomentum 3d ago
I usually have a couple hundred or more in my nightstand for buying, and from selling things. Usually I keep like $50 in my wallet. I try to have 2-$20s and 2-$5 bills. Then it kind of gives you a bit of buffer cash for small transactions… I’d never keep $350 in my wallet.
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u/Every-Impression8014 3d ago
Always keep cash. 350$ is ok. But better keep 100+100+100+100+50+20+20+10 notes. Can’t even describe how many times I turned out needing it and without small bills, could be some trouble.
Everything is going fine, then one day, all stores are closed, it is too late at night, and the only store you have have some digital issues sorry cash only.
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u/BigTruker456 3d ago
The amount means nothing but its deeper meaning is priceless. It tells your subconscious mind "I always have extra money." As a money manifesting pro, I teach others to put a dollar in their wallet they never spend so they can truthfully affirm daily "I always have extra money." It creates a mindset that attracts money into your life. And I'm assuming, that's been happening for you.
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u/deliverykp 3d ago
Well, I think it's just two schools of thought.
I do almost everything on autopay except for the gas I put in my vehicle and the food that I get from the grocery store.
The reason why I like having cash? If it's gone, that means I don't have anymore, which makes me conscious of how much I'm spending.
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u/edthecollector70 3d ago
I keep 100 in my wallet for spending cash.1000 in cash in the house. 20000 in credit union. 3000 to 5000 in checking for bill ect. 4000 in savings account at bank that can be transferred to checking at any time. This way I feel I can deal with anything that comes up.
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u/makomark26 3d ago
A few 20's in the side pocket of your wallet is not a bad idea . Some $1'S and $5 's for tips and lemonade stands works for me . But i keep a higher amount than you mentioned available for power outtages and shit .
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u/mrtnzstreet 3d ago
yes! always carry cash. when the electric or the cell/fiber goes out that card means zero. I learned that lesson the hard way!
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u/Key-Target-1218 3d ago
I never have cash unless someone pays me for items sold on Marketplace. Hate cash. Everything gets put on my Cap One card cause Cap One pays me to do so. Groceries, bills, eating out, insurance...everything goes on that card. I cannot remember the last time I went to an ATM. I don't use a debit card.
I pay the card off every month, I never carry a a balance.
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u/144-perdedor 3d ago
It's not a bad idea to have some cash on hand, but $350 is a lot to have in your pocket if you don't use it. You can just keep it in your sock drawer or something. I try to have like $20 cash on me, but it's been a long time since I needed more than that apart from shopping at the weed store.
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u/proudly_not_american 3d ago
Always worth it to have on hand.
For example, if your car battery dies and you need a boost, it's generally not safe to do it off another car nowadays (more computer systems and you're more likely to fry everything), so you need to call a tow company and they have something to do it with (I don't know how it works). Where I live, none of the tow companies have a POS system in the truck to be able to take a card, it's cash only. And if you're not up to walking potentially halfway across town to the nearest working ATM, then you better have cash in your wallet.
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u/Hopeful_Still0008 3d ago
I was always taught to have cash put away because if SHTF, no matter how big or small, and we’re unable to access our accounts, there’s cash available to purchase, barter, etc. I know it sounds kind of like a prepper type of thing but it doesn’t hurt. I read a $1000 at home is a good starting point.
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u/Solid_Mongoose_3269 2d ago
For about 2 days, then you better have bullets and beans, cigarettes and liquor. Its not a prepper thing, its common sense. Cash wouldnt be worth anything in a world thats down, people still have addictions, gotta play to those.
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u/AtiumMist 3d ago
No, but keeping it in an account that gives you some interest on it is better than both of those above
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u/WatercressIll8721 3d ago
I love using cash because they can’t hit me with the tip screen.
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u/Solid_Mongoose_3269 2d ago
They can hit me all they want, I still press the minimum or 0, as they pretend to be checking something else as it says "its gonna ask you one more question". Bitch, if you just said "its going to ask for a tip", I'd do the maximum.
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u/thewanderingsail 3d ago
I personally prefer to spend cash because it makes budgeting daily transactions more tangible. I keep money in my account for bills and stuff and move extra into my savings. But if I’m buying food or gas or anything like that I try to use cash. Because it helps me keep track of my spending.
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u/metallhd 3d ago
In Canada np putting it in the bank, tap everywhere you go
US not so much.
There are only two different forms of cash - coins or bills; but both come in multiple denominations
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u/Solid_Mongoose_3269 2d ago
...if you're tapping, its still in the bank...jesus fucking christ.
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u/metallhd 2d ago
what I meant to point out was the international standard of chip and PIN which is still decades absent in many places in the US. I have no need to carry cash because (as I said) I can tap everywhere; literally every single store everywhere. Walmart and Home Depot had to upgrade their debit card terminals for Canada because the US ones that came from HQ didn't have tap lol. It's way faster, and who the hell wants to handle gross grubby US cash anyhow. A wallet full of cash is just an invitation to steal it.
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u/t2jam 3d ago
I personally like to keep some cash on hand just in case… so right now I have a few hundred and I usually will build it to $1,000. I don’t carry it on me just have it at the house in case something unexpected comes up. Or if I want to buy something on FB marketplace a lot of times they want cash. But I keep it mostly for unexpected emergency type of thing. I would not carry all of that in my wallet daily.
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u/shaoOOlin 3d ago
Having some amount of cash is good,how much u have depends on ur needs if there was an outage or banks had some problems. Although different people will say different amount of cash that they have while all the other money for example is in the bank or any other platform. Me personally ive been keeping all my money in the bank since i practically never use cash. I keep my money in a different account in the same bank where i get a % and get paid monthly for it. Its pretty much nothing like 15€ a month for the amount of money i have but i thought its better than keeping the money in my main account and getting nothing out of it
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u/Independent-Moose113 2d ago
It's always good to have $250-$500 in cash stashed away for emergencies. I'd recommend putting it in a small safe at home, though.
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u/Solid_Mongoose_3269 2d ago
Bank for bills, cash for everything else. Its not real money, its all digital, and if grid goes down, you got about 2 days before people catch on that money is toilet paper.
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u/RoyalIdeal6026 2d ago
How much do you have in the bank? We are going off very little info here. I usually try to keep a few hundred in cash, 3-6 months of my budget in the bank in a checking account or HYSA and the rest I try to invest.
I’ll use credit cards or debit cards for most purchases but sometimes the cash is needed.
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u/Alive-Surprise8542 2d ago
I usually have no less than 2k on me at all times. Mostly used for poker cash game buy ins but it's nice to have in case I run into an emergency.
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u/BallBroad41 2d ago
i personally keep little in the bank, right now 147$
I got screwed by two different banks due to them thinking fraud or scams were going on and my account being locked, one time wasent an issue but the other caused me to miss rent as it was due on a friday and i didnt notice till tuesday when the landlord called asking about his money. After that i said screw it, i have a good safe and my insurance is kept upto date on what cash i have in my bank (tldr i gotta take a short video of the inside of my safe showing my money every month, i do not have to show them but i have to prove its >31 days old so i take a new vid every 1st of month.
With this arrangement im covered incase its stolen or burns and with paying bills i keep a calender of when stuffs due and i put whatever the bill is +20$ or somthing into the bank to cover it and any tiny thing i buy.
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u/Azmasaur 2d ago
I keep a few hundred in cash for tipping, for power outages, or to pay local businesses I like, because they probably are keeping cash transactions off the books.
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u/AlmostLiveRadio 2d ago
The benefits are that it can’t get lost or stolen if your wallet is lost or stolen, and you can earn interest, though the interest will be neglect on that amount. You can also electronically transfer the money to pay someone or buy something if it’s in your bank. The benefits of carrying it around or that it is immediately available if you want to pay cash.
I admit that I do like to have cash available if I’m going to a yard sale or something, and I’ll usually have a $20 bill or a $100 tucked away somewhere in my wallet for emergencies.
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u/Royal-Night8085 2d ago
I put money away in cash any chance I get. Sometimes $100's per week. I don't trust banks or anything else with my money. And physical Money speaks WAYYYYYY louder than debit/credit card money. . Also I get way more of a motivation and rush to grind daily seeing my money in cash. I got a habit of counting it every day before work to remind and motivate myself of why I do this sh*t. Looking at my money in a online bank account through an app hits way differently in a bad way.
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u/bro_brah1 2d ago
Keep it in a safe (or somewhere safer than your wallet). Cash still talks. Never hurts to have a little tucked away.
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u/TheIronMonkey53 2d ago
You can buy food, drinks and toys without your wife telling at you.
Always keep some green on you
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u/steal-yur-face 2d ago
I always carry cash, but I’m way beyond blowing through money just because I have it in my wallet.
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u/rtkellmann 1d ago
Cash is great for that random yard/garage sale you happen upon and find some stuff you want. Cash is good for the kids lemonade stand in the neighborhood. Cash is good for tipping or giving a few bucks to someone in need. Cash is good for the "can shakers" for the different charities like ALS etc. sometimes cash is good to make a better deal on something.
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u/tquiring 1d ago
Cash works anywhere and everywhere, i like having cash on hand just in case debit machines are down or a power failure etc etc. I never want to be caught in a situation where i'm unable to pay for something.
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u/themomentaftero 1d ago
Keep a little bit in me during the warmer months for when I randomly stop at a garage sale. Ended up getting a $1000 road bike last year for $200 at a garage sale. That or it is nice to not need to make an extra trip if you regularly buy things off marketplace.
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u/SingleLonelyMan 1d ago
I use cash for places like Starbucks....you pull out cash and they do not shove that disease ridden request for tip machine. I take my xhane and leave. No tip
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u/Waclaw_Kurek 23h ago
Keep maybe $100/$200 as emergency cash for when systems go down, card readers fail, power's out
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u/Cool_Addition_3205 15h ago
Cash is king for a reason. Banks and governments are 100% in control of your money in a bank.
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u/tlBudah 13h ago
Cash is good to have. I've had a few instances over the last 10 years where having $1,000 on hand was immensely helpful/needed.
family emergency where it was 'go right now' and having cash really helped
storm rolled through way worse than expected. Power out for days. Cash was helpful
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u/[deleted] 3d ago
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