Cash Is King Again When Budgeting

A report issued last week by the Post Office confirms that people made record cash withdrawals in July.

In June, the Post Office record £744 million being withdrawn from their ATMs but this rose by 7.7% in July to a record £801 million.

The Post Office suggests

• People are turning to cash to help manage their budget with the cost of living rising.
• More people are taking more UK staycations.

The Post Office also suggest this new record only just exceeded its last record in December 2021 when more cash tends to be withdrawn for Christmas presents and festivity spending.

In addition, cash deposits by both businesses and consumers are up by 2% as people start to save ready for any recession to come or ever higher fuel bills.

Comment

Cash is fighting back to become King again.  As a society, we have become perhaps a little complacent with our spending when it is so easy to tap with your card or indeed smartphone.  It is way to easy to lose control of what you have spent that day or that week.

We have always been strong advocates for cash, when people are trying to manage debt, budget or save. 

By using cash and not cards when you go for a night out, you have set your spending limit whereas the temptation with a card to ‘have just one more’ is too easy.

When shopping for groceries or clothes, cash means you can go to the usual cheaper suppliers e.g., jumble sales, ‘car boot’ sales or your local market as stallholders usually have lower operating costs and can offer you a basic T-shirt and jeans much cheaper than a major fashion chain and your bananas, fish or meat may also be cheaper and indeed fresher from the market fishmonger or butcher.

Cash is king, long live cash.