Cash In Your Pocket — How Much Should It Be?
I talked about how to curtail and curb credit spending before. One of my suggestions was to stop bringing your credit cards altogether and opt to bring cash instead. And while I do maintain my stand on the issue, there’s the question of how much cash should one carry around. There are many aspects and elements to consider when deciding on how much cash to carry. Here are two of them:
1. The Environment
You have to think of what kind of place you’re living in or what kind of place you’re going to. In urban locations, ghettos and slums for example, where instances of being robbed are high, bringing big amounts of cash would be foolish.
2. The Amount You Actually Need
The bad thing about having to bring cash is that you’re compelled to spend. And if you’re not very good at restraining yourself, not bringing credit cards won’t do any good. So if you’re going shopping or eating out or just plain taking a walk, gauge the amount of money you need and bring only that plus a bit of extra in case of emergency.
No matter if its cash or card you carry, self-discipline is needed so you don’t overspend. Perhaps the advantage of cash is that you’re capped to what you have in your pocket. Which brings us back to this post. The amount of money you have in your pockets you should carry should always be planned. Do not bring a lot more than what you actually need and bring only what you intend to spend. It’s important to bring some money for emergency but if you do, keep it hidden and don’t spend it unless absolutely necessary. In a nutshell, finances should always be monitored whether they be cash or credit card and you should never lose self-discipline and focus.
Filed under: personal finance
