Carrying cash

There is no amount of wealth that can surpass the all-too-rare occurrence of having a wallet full of cash.

In these days when plastic pays for everything, the times in which I have actual greenbacks on my person are so few that I can’t help but feel special. It doesn’t matter if its $7. Carrying cash makes me feel like I’ve got money, no matter what the bank statement says.

I think it’s another symptom of life in the New South. People used to have to carry cash. How else would you get a “Co-cola” when the impulse arose? Or how would you fill your gas tank without a $10 tucked away in a money clip?

For about the last 10 years, whenever we need cash for an activity, we have to borrow it from our kids. Carla’s Dad always has cash on him. He’s of that generation, and, frankly, it’s one of those attributes in him I admire. I somehow feel less masculine to be penniless and have to pull out a card to pay for something.

He shares this cash with his grandsons liberally. Every time we visit, he concludes his time with the boys by handing them their “Poppy Money.” Hence the reason they always have cash.

A few years back Carla implemented the cash-only Dave Ramsey method of financial management. We tightened our belts and spent less than we ever have, but I felt like Warren Buffet because I always had a wallet-full of paper money.

The theory behind Ramsey’s approach is simple: you spend less when you realize how much you are spending. Swiping a credit or debit card doesn’t have the same psychological impact as handing a cashier money. The economic principle of scarcity doesn’t exist when you use plastic because you never really know where the bottom is. With cash, when your wallet is empty, you stop spending.

All the folders and envelopes got to be a nuisance, and we eventually abandoned the plan out of logistics and time shortage, but when it comes to feeling in control of your money, nothing beats having cash.

It used to be that carrying cash made us feel more vulnerable. Someone could grab your purse or lift your wallet, and you would lose money. Today, however, it’s more likely that someone will steal your credit card number or, worse, your identity, and rack up huge charges before you ever find out. In most cases, cash is actually safer.

When debit cards first came into being, we bought the lie of convenience. You don’t want to have to go get money out of the ATM to have cash. Well, if you remember, there was a day, not so long ago, when you received an actual pay check. You took said check to a bank where you cashed it, depositing some into savings and checking to cover the bills you paid with a check. You left the bank with money in your pocket, and you spent that money until it was gone. And when it was gone, you stopped spending. That’s not inconvenience. That’s intelligence.

Debit cards give you access to more of your money than is prudent, and credit cards are a bottomless pit. Besides, I have no relationship with my money anymore. My remuneration is directly deposited into my bank account. I never see it. Bills are paid automatically out of my bank account or are paid with the click of a mouse online. I haven’t conducted the experiment, but I bet I could very nearly abandon cash altogether.

So at the risk of sounding like a Depression-era financial adviser let me simply conclude that cash is a rare commodity in the New South. I don’t know if it is progress or not. The absurdity of paying more than $5 for a cup of coffee surely would sink in if this was a purchase we regularly used cash for.

Do you find that you never have cash anymore? Do you find it as embarrassing as I do to be caught without money? Have you tried or are you still using Dave Ramsey’s cash-based personal financial plan? Share your thoughts by leaving a comment below. We’ll all be richer for it.