Do you know anybody who goes cash only?

[ilovedolphins]

Just wondering if you know someone who just pays with cash. No cards, checks, bill pay, etc.
And they pay their bills with money orders or cash.

I was just remembering how simple life used to be when I was 19 or 20. Just cashed the paycheck and got money orders for bills and paid everything else in cash.

I have thought about giving it a try again and see if it is still simple.

[justwhoever]

Sure I know lots who do that. But it's because they have accounts at every bank in every town within 30 miles that are in the hole. Walmart cashes checks for $3. And you can get money orders there or at post office.

Not sure if that is a simple life or a stupid life though.

[Agatha]

Actually I do. My older brother. I don't think he's ever had a checking account. It's always been cash or money order. And, yes, he has a house mortgage. Doesn't have a savings account either but has savings bonds in amounts I find both amazing and scary. He's never had a credit card either that I've known of.

[blackcard]

Not cash only but cash and checking account. Credit cards are now almost a necessary evil. Just try renting a car without one.

[ilovedolphins]

agathas - how old is your brother? Just wondering if it is a young person or a person who has done this for some time.

[NastyWoman]

Not a single one..

[Agatha]

Feb 2, 2011 23:27:20 GMT -5 ilovedolphins said:

agathas - how old is your brother? Just wondering if it is a young person or a person who has done this for some time.

Sweetie, he's older than I am; he's 61 and will be retiring in four years.

[haapai]

Yup. I know a few. No savings or checking account, just a payroll debit card that is used to withdraw cash immediately and convert it into money orders if necessary. The payroll debit card has some small but confusing fees that are not particularly well disclosed or explained and are most easily avoided by emptying the account once per pay period. In a pinch the account could be used as a safe parking spot for money but even checking the balance electronically through the wrong portal or too often can trigger fees.

Sadly, I don't think being in telechex is the reason behind most of this behavior. A lot of these folks have sob stories about banks that drained their checking or savings accounts with $10 a month fees for low balances. There are lots of better banking institutions in the area, but once bitten, twice shy applies.

IMO, it's a horrible way to live. It really doesn't take rocket science to know when these folks are carrying cash or have money stashed in their homes.

[ilovedolphins]

agathas - I was just wondering because I and my son are not good at spending using credit cards. I tend to over spend when using them. I have been trying to convince my son to use more cash but he says he spends cash faster than using a card. But then he wouldn't be in credit card debt either because when he ran out of money he would be done spending. He just isn't very good with money.

[973beachbum]

I know one family that does. They have for as long as I have known them and that is almost 20 years. It also started from a mess with a checking account. The man had a business and the other partner bled the account and then continued to write bad checks all around town. They paid for years trying to straighten things out. He swore after that that he would never have a bank account. I just roll my eyes and thing but you still talk to the jerk who caused it all.

To answer you specific question. He gets paid by check. He takes the check to his employers bank where the check is drawn on to cash it. He has a mortgage on his house. He has utilities like electric and cable, Internet and cell phone. They also have 3 cars. I don't think they have loans on the cars but they have insurance. So they get a money order for the mortgage. I think the rest they pay in cash in person. The wife makes a trip to the insurance agent and pay ins there. The utilities you can pay at most banks here. You just walk up with your utility bill and payment and they will deposit it directly into the utility's account. the rest the just pay with cash, like groceries or clothes etc.

I am pretty sure they have a safe in their house and might have a safety deposit box as well. I have no idea how much they have saved for retirement but what they did I think is in the safety deposit box at the bank and they only keep "petty cash" at home in the safe. I think they also have savings bonds as savings in the box.

I am pretty sure the system they worked out is that the money gets "allocated" pretty quick. They know exactly what bill they are going to pay as soon as he cashes his check. Then they figure out what they need for incidentals like groceries and gas and such and put that aside. The rest gets put in the box or safe fpr savings.

[❤ mollymouser ❤]

Actually, a lot of people around here are on a cash only basis ~ usually (but not always) because they are undocumented workers / illegal immigrants and don't really have options like bank accounts. Others do it because they are trying to "stay off the grid" as much as possible. (I think they distrust banks and the government)

[ilovedolphins]

I know a lot of the illegal immigrants are on cash only here also. Every time I go to the post office someone is buying a money order.

[998fbird]

I know one person who does this because they were basically off the grid for awhile and another who is cash for everyday and checks to pay bills because they are deep in CC debt and working on digging out of their hole.
I personally think that cash/money orders are HARD. But, I was much much better at handling my money when I got a paper pay check. Direct deposit makes me less able to deal with my money and allocate savings.

[haapai]

Paying with cash used to make the clerk's eyes light up with relief. S/he was usually relieved that you weren't paying with a check or credit card both of which took longer and were a bit of a hassle. If you were dealing with the owner of a retail establishment, they visibly deflated when you pulled out a checkbook or a piece of plastic. In addition to taking longer than cash, checks and credit cards also netted slightly less (due to bounced checks and credit card fees) and it was harder to under-declare the revenue.

Everybody wanted to pay with cash back then. People were much nicer to you when you paid with cash.

I'm not sure that's the case any longer. Nowadays, paying with cash has acquired a slightly disreputable pong.

A young person with a spotty money-management history might be particularly sensitive to any sniffs and snubs that come with paying cash and this might outweigh any other benefits of going cash-only.

[bobbysgirl]

And I hate being in line behind the person who spends 5 minutes looking for exact change like there's going to be a freakin' award for being the Exact Change King/Queen!



LOL This behavior usually sneaks up on someone when they turn into a senior citizen!!

[lurkyloo]

SIL is one of the "unbanked" that the NYT was making such a fuss about a few months ago. She and her XH owned a restaurant that got into tax arrears a while ago; she's since worked out a payment plan for her half with the IRS but still does all cash AFAIK. We charged an emergency train ticket for her during one of the big eastern blizzards because she didn't have a credit card of her own to reserve it online. I find it a little odd just because she seems to carry high-denomination bills around with her--you don't see too many Benjamins around these days!

Not sure what she does for rent or cell phone/utility bills.

[mommy2twoal]

I am not cash only, but mostly. I pay bills online or with credit card, but all other expenses that are not saved for future (insurance, repairs, license/registration fees, etc) are taken out in cash and allocated. When money is gone its gone, no more. Groceries, gas, entertainment, eating out, gifts & clothing allowances are cash only. I have never not had a checking account but I do prefer it this way.

BTW, I have gotten more than one discount for using cash.

[justwhoever]

Out here in the sticks...you have to use cash or check at a lot of places. Our electric/water/sewage/trash bill will not even take debit cards. Same for gas company. When we had a Subway...the owner refused everything BUT cash. If you didn't have greens...you didn't eat there.

I realize that the differences in small town vs. city are extreme. It's just really funny to see how different.

We have a checking and savings, but we do not have checks. Nor will I pay to get any. Take the card or I will bring cash. The only reason it's a pain to use cash for me is because I don't carry a purse. I'm picky and haven't found one that I really like enough to carry and worry about.

[kadee]

We use CC for gas or on trips (food/lodging) or for internet purchases, but NOT for every day expenses.
I write checks or use cash. I always pay ME first....set amount goes to savings, then pay the bills and what is left pays for groceries & any goodies we want. If there is money left at the end of the month...it goes to savings too...just another account for major purchases.

In this area we have LOTS of illegals and folks who don't have checking accounts, can't get checking accounts, can't handle checking accounts (well, I've got checks left I don't need money in the account). Lots of people use cash only & buy MOs every week.
BTW, a lot of the convience stores have cheaper MOs than PO or even Walmart.

[kansasflower]

Other than my grandparents who believe that using a credit card will lead to having their identity stolen, the only people I know who are strictly "cash only" have filed bankruptcy or are trying to not pay taxes on their income (i.e. work under the table, mostly cash based self employed work, etc). I don't know anyone who is doing "cash only" as a means to save money or be frugal.