26 Ways A Cashless Society Can Simplify Your Financial Life and Save You

Our financial lives have been transformed by digital payments and the transition towards a cashless society in recent years. The adoption of cashless transactions has many benefits, including simplifying our financial lives and reducing our overall expenses.

It may be for this reason that more and more people are switching to cashless payment systems.

In less than a decade, Americans went cashless by double digits in a typical week, according to the Pew Research Center. Approximately four out of ten Americans (41%) say they rarely use cash for purchases in a typical week, up from 29% in 2018 and 24% in 2015.

On the other hand, the proportion of Americans paying for all or almost all of their purchases using cash has steadily declined from 24% in 2015 to 18% in 2018 to 14% in 2019. However, roughly six-in-ten Americans (59%) say they pay for some of their purchases in cash in a typical week.

If you still think cash is king, here are 26 ways a cashless society can help you save money and transform your financial habits.

1. Lower transaction costs.

When it comes to digital payments, they’re usually cheaper than cash payments.

With every purchase, you save immediately.

2. Earn cashback rewards.

Businesses often give you cashback or discounts if you use cashless payments. Over time, you’ll save a lot of money. If you use your credit card to pay cashless, you’ll get airline miles and cashback.

You might get more rewards with some credit cards than others depending on your spending habits. There’s a catch, though: If you don’t spend enough on travel rewards, you won’t get the bonus miles. Due to this, you might not get enough to justify buying it or paying for it.

However, since cashback comes with a wide range of reward categories and can be used anywhere, it’s an all-around bonus you may find appealing.

You can also earn different rewards with different credit cards. There are many cards that give you a flat cashback percentage for all purchases, while others give you a higher percentage for certain categories, like dining or shopping at certain stores.

3. You can track your spending easier.

The problem with cash is keeping track of how much you spend. With a card or digital payment, your transactions are tracked in real time.

Simply put, it makes it easy to see where your money is going and cut back where necessary.

4. Budgeting apps integration.

By integrating cashless systems with budgeting apps, it is easier to track expenses and identify areas for saving.

YNAB, for example, allows you to sync your bank account data, import data from a file or manually enter transactions. Once you have signed up, you can create your first budget and assign every dollar a purpose, such as rent or car payment, according to your needs.

In time, you will be spending less money than you earned 30 days ago. In this way, you’ll always be one month ahead.

5. Eliminate ATM fees.

An out-of-network ATM fee assessed by one’s bank plus a surcharge imposed by the ATM owner combined to a total of $4.66 in Bankrate findings, the highest since 2019. Non-customers were charged a surcharge of $3.14, up 1.9 percent from $3.08 in 2021.

By reducing ATM withdrawals, or eliminating them altogether, you can eliminate ATM fees.

6. Reduce currency exchange costs.

When you make a purchase abroad or in a currency other than the U.S. dollar (USD), the foreign transaction fee (FX) appears on your credit card bill. The fee, which typically ranges from 1% to 3%, is charged by many credit card issuers.

However, cashless payments can save you from costly currency exchange fees and unfavorable exchange rates when traveling internationally.

7. Pay your bills automatically.

Using automatic payments to pay your bills can save you money in a number of ways.

• You may be eligible for discounts. Incentives or discounts may be offered to customers who set up automatic payments. Signing up for automatic bill payment might give you a small discount from your utility company, for instance.
• You can avoid late fees. The cost of late fees can add up quickly. With automatic payments, you will never be late on a payment because you forgot to make it.
• You’ll stop paying overdraft fees. When your checking account’s balance falls below zero, you may be charged a fee. In order to avoid this, you need to make sure you have enough money in your account to pay your bills automatically.
• Your credit score may improve. Making on-time payments on your bills is an important factor in determining your credit score. Setting up automatic payments increases your likelihood of paying your bills on time, which helps you improve your credit score.
• You’ll save time. You can save a lot of time by setting up automatic payments. No more checking the mail or making monthly payments online.

Additionally, automatic bill payments can assist you in staying organized and keeping track of your spending. If you set up autopay for all your bills, you can easily…