In the electronic age of the 21st Century, it is very easy to fall prey to debt traps and impulse  buying. The intent of all modes of electronic payment, whether it is plastic cards or net banking, nothing comes free, and these companies make huge profits by charging you heavy interest and  convenience charges.   

The use of hard cash as a mode of payment may be frowned upon by many of your peers, but  it has its advantages. 

 Watch where your money is being spent. Spending cash sets up a mental and  psychological barrier, and you do not buy things impulsively. You will also see a drastic  drop in your credit card bills when you start using cash. Use credit cards only during  emergencies. While debit cards and payment gateways also tell you’re available  balance immediately after the purchase, they too are quite impersonal. 

When you pay cash for something, you value that purchase more than something bought  through other means. It makes you feel connected to the purchase. Sometimes cash  payments fetch you better deals or some additional frills.   

 Controlling purchases means less overspending. This, in turn, means fewer  convenience charges, less interest and less outstanding. It gets you into the mode of  financial discipline. You automatically learn to live within your means. No  overstretching. Less debt traps. No delayed payments and no resultant charges.  

 Since every penny counts, even the loose change that you get back is used automatically  during daily purchases like milk and vegetables. Even the youngsters in the household  develop the habit of saving by looking at your piggy bank or coin jar. You also have  the option of depositing this saved money in the youngster’s bank account or for making  investments in their name.  

Since you realise the actual value of any purchase and associate your liquidity with it,  many times you may be forced to delay your purchases to stay within your budget. This  is a major advantage as it helps you to rethink about the purchase and eventually decide  either in favour or against the purchase.   

 When going out with friends, carrying cash, and using it makes it easier while splitting  bills or while paying tips to the server. A suspended card or a technical glitch, especially  after a great party can be very embarrassing.  

 Carrying cash will always get you out of any emergency, especially in our country  where the usage and availability of electronic means are still very limited and restricted.  Any business values hard cash more than other modes of payment. 

Cash transactions are not traceable. Hence are sometimes preferred as a method of  bypassing the taxes or for avoiding traceability. While most of us may not fall into this  category, nevertheless knowledge about this option also is required.  

Financial discipline and to avoid falling into a debt trap, the use of cash (hard currency) is one  of the ways to improve your financial health. Hence, it is essential to pay proper focus on  achieving financial efficiency and effectiveness.

Important links- 

1.https://www.fullertonindia.com/knowledge-center/what-is-debt-trap.aspx 

2.https://www.msmex.in/learn/what-is-financial-discipline-in-business/