So you've made the decision to retain your money at home for one reason or another. However, you can't help but question what the advantages are.
Both rich and poor people keep some money at home. According to a recent FDIC survey, 36% of consumers do not have or do not have enough money in a bank account because they do not trust banks.
Because of this lack of trust, financial experts recommend that you maintain enough money at home to meet your living expenses for at least three months in case something unexpected occurs that prevents you from receiving funds from your bank.
Simultaneously, it's a good idea to deposit more money in the bank for protection while retaining a modest amount of cash at home to fulfill your daily necessities in case of an emergency.
Rather than keeping $50 on hand for a day's dinner, strive to keep at least three months' worth of rent payments, food essentials, water, gas, and other basic living necessities.
We've already addressed the advantages of saving money in a bank, so let's move on to the advantages of storing cash at home. You'll have extra reasons to keep some money at home after reading this article.
You Are Not Required to Pay Any Fees to Keep Your Money at Home
Another advantage of having money at home is that no fees apply. Banks charge a lot of fees, but saving money at home is completely free.
Banks advertise that they offer interest for storing your money, yet they charge high fees for any transactions you make.
Bank of America, for example, charges $35 for not having enough money in your account, whereas Alliant Credit Union, one of the largest public credit unions, costs only $25.
If you use up all of your free transactions in your bank account, you will be charged overdraft fees. In addition to other fees, most banks charge a monthly account maintenance fee and an ATM card maintenance fee. Avoiding these charges is one perk of storing cash at home.
According to a Pew Research Center research, one-third of unbanked persons said they stopped using traditional financial institutions because of excessive or inexplicable bank fees.
When it comes to excessive charges, many consumers believe that banks do not explain their fees and fee structures in a straightforward and transparent manner.
So, because it's free, one of the advantages of keeping cash at home is that it protects you from the bank's unexpected, unnecessary, and hidden expenses.
Safe From Govt. Raid
One advantage of having cash at home is the ability to avoid a government bank raid, which appears to be the most common, affecting both the rich and the poor.
For example, if the government decides to convert all foreign currency in all bank accounts into local currency, the foreign currency's value will fall. This is typically done when a country's economy is in distress, and I've heard that Argentina and Iceland have both done so.
This type of government policy will have no effect on you if you hold foreign currency at home, which is one of the advantages of keeping money at home.
People in Cyprus lost up to 47.5% of their savings as a result of the government raid on banks in 2013. Because the banks lacked sufficient funds, the government converted debt into equity. Because the government cannot control some of the money at home, keeping cash at home is a good option in this scenario.
There Are Almost No Safeguards in Place to Protect Your Savings at Home.
One advantage of keeping cash at home is that those who dislike long protocols and processes can avoid them when dealing with money.
Even though many banks claim to want to make banking easier and more accessible, opening a bank account can be a chore in and of itself.
Most countries, especially those with dense populations, will need you to wait hours to deposit money or use an ATM.
Unfortunately, some communities lack a sufficient number of banks for inhabitants to use on a daily basis. As a result, they should keep their money at home rather than in a bank.
It's inconvenient and annoying to wait in line at the bank for an hour or so merely to get served due to the bank's procedures. Meanwhile, financial institutions continue to make billions of dollars.
For these reasons, keeping cash on hand at home can be beneficial. Saving money at home eliminates the need to interact with banks.
Debt collectors cannot access your funds.
One advantage of keeping cash at home is that it prohibits debt collectors from easily accessing your funds.
For example, if you have been pursued by someone for payment of an old debt, the court may order the bank to collect the money from you. Your bank account is the only simple way for court orders to access your funds.
It can be beneficial to retain cash at home if you wish to stay off the grid and keep your money out of the banking system.
Furthermore, if you owe an unpaid tax, having all of your money in the bank will force you to go bankrupt. This could lead to bankruptcy, especially if the government requires payments. The bank typically maintains track of how much money you make, which is extremely useful to tax and debt collectors.
Your Funds Are Secure From Bank Fraud and Frauds
Even if your money is safe in the bank, keeping cash at home can help you prevent fraud and other problems with the banking system.
We are all aware that hackers and con artists are attempting to steal money from people's banks, particularly those who utilize online banking. The majority of people fall victim to wire fraud.
Most of the time, the fraudster obtains a bank customer's username and password and then emptys the account without leaving any trace. Keeping cash at home protects you from losing all of your money due to fraud or vulnerability in the banking system.
Furthermore, some people who perpetrate banking fraud are either former bank workers who know the ins and outs of the bank or current bank employees who believe the account owner has died and no one can retrieve their money.
For example, you could have a bank account worth up to a million dollars that you haven't used in years, only to discover that the balance is only $500,000. I witnessed this, and the bank's customer sued for fraud and deception.
Even if it doesn't happen very often and the government is doing everything possible to prevent it, fraudulent bank employees occasionally fiddle with money in an account that hasn't been used in years.
One advantage of storing cash at home is that you are less likely to fall victim to such scams, whether perpetrated by robbers or bank personnel.
Do You Have Protection During Natural Disasters?
The vast majority of people live in disaster-prone areas. Natural calamities such as hurricanes, earthquakes, and tornadoes can knock out power, making it impossible to buy food.
One advantage of keeping cash at home is that it allows people to pay for their daily requirements even if the power goes out and electronic payments are unavailable.
even in extreme conditions, such as during the epidemic, when there was a statewide lockdown and the banking system was not operating as normally. You can buy your needs down the street with your home money.
It is Simple to Pay for a Small Amount of Work That Does Not Necessitate a Bank Deposit
When neither you nor your employees want to make payments through a bank and neither wants to get paid in a bank account, having cash on hand can be useful.
For example, if a youngster down the street offers to mow your lawn or do an errand for you but does not accept credit cards, you can pay him if you have cash on hand.
Furthermore, some customers prefer to tip their delivery or service staff in cash. You can't expect someone who wants to leave a $3 tip for his delivery driver to pay online.
The most obvious benefit of keeping cash on hand is that you never know when Girl Scout cookies will be delivered, and you don't want to miss out on thin mints because you don't have enough money to pay for them. As a result, having enough cash on hand will allow you to pay for the cookies.
It Helps You Save More Money.
Many people find that putting away $10 to $20 per day makes it simpler to save money. People like this can save money at home and then deposit it into a bank account when they have a sufficient amount.
The majority of the time, these saves come from little sums of money discovered on laundry day or around the house. So you don't imagine they'll be depositing that much money every day?
It Helps Protect Your Bank Account
In general, one advantage of storing cash at home is that it can serve as a backup for your bank account in the event of an emergency.
For example, if you lose your credit card or your banking credentials (such as your internet login information), getting new credit cards or replacing your lost credentials can take some time.
Having additional cash at home means you may continue to pay for everyday expenditures while you obtain a new credit card or fresh information to replace your lost credentials.
Article source Advantages of Money at Home: Right Here is the Quick Listing
Http://images.Google.Co.Jp/url?Q=thelegitways.Com">Why is Traveluro So Cheap
Http://maps.Google.Co.Jp/url?Q=thelegitways.Com">Why is Traveluro So Cheap
Tags
Reviews