The Future of Cash Money

My wife and I just left a local farmer's market here in Southern Ontario as most are on display most Saturdays. We bought a couple loaves of locally milled bread (Yummy) and lunch consisting of chickpea curry and basmatti rice.

She asked me how much cash I had left? When I was finished rummaging through my murse. I said "7 bucks". "Well that's not much and I said what more do we need and why?"

This got me thinking as we just passed the blackout anny of 2003. Nothing worked when the grid melted down. People were fighting for cases of bottled water and starting to hoard like the early days of the apocalypse. Humans can get unruly in a power failure. With everybody forced off grid, cash was still king in the dark. It was all that was acceptable. I was screwed because I don't carry much to any paper money anymore. My fault? or is it?

I pay for everything with debit or credit. You see I've been programmed to collect those loyalty points. Canadian Tire, yup got the app to collect internet money. With my credit card I collect PC points for groceries. Nothing too crazy but you have to be loyal to something other than going to the bank in person don't you? I mean what's in there anymore? Just some people struggling to sell products they know not much about.

They don't handle large sums of cash. You gotta call ahead for that. Need 5K in US cash for travel? You better phone first. I mean they don't even carry cash so why should you and I?

Everything you need is transferred these days. Your paycheque is on direct deposit. After it goes in bills are automatically sucked out because you set it up that way. No need to line up to pay for power, phone or cable. 

At the bank try and take out all the money you own in cash that the terminal tells you, you have. Can't have it. Make an appointment. This is another reason a lot of people are pickled in debt. Banks make it so easy to do it online. When I logged into my account the other day, waiting for me to accept was a Visa card with a $20K limit. All I had to do was click accept. I have more credit than I need. Sheesh it's far too easy to apply for credit and far too hard to get at your cash physically.

Banks in their present form are the new dinosaurs of the downtown strip mall landscape.They deal in credit and NOT in cash. This is the future for a few more years anyway. Bank tellers are becoming extinct. Replaced by an app. It's cheaper housing a few ATMs and keeping a couple managers around to deal with complicated mortgages and loans. That's it. It's coming. Farmer's and street musicians deal in cash, but for banks it's becoming too burdensome and expensive to deal with.

I mean banks are still getting robbed and websites getting hacked is the new norm. I doubt I'll be opening a new account on my phone but many do. This is the future. Banks will close and even your grandma will be forced online. Digital currency will reign supreme and e-transfers are the new normal to pass money in any transaction. I'm as guilty as anyone for embracing this new technology. I love the simplicity and convenience and I don't have to socialize and do that people thing.

In my previous work life, I spent 10 years working in the Armoured Car Business. Layoffs, reductions in customer service and route cancellations were the norm every year. The business is shrinking with customers from beer and liquor stores, casinos and banks all cutting back on when they need a pick-up. Why? people are not using cash, they've gone electronic. Cash is expensive when you've got little to handle.

Here in Ontario we're on the cusp of legalizing weed so all this is just in time for an industry getting smaller while Cannabis explodes in value. Most of the sales will all be on credit. I doubt you'll see armoured trucks parked outside either dropping off or picking up more than bi-weekly.

Unionized workers cost money, new trucks, maintenance, infrastructure all are unnecessary expenses when it comes to using paper and coins in their physical form. I'm sure in a few more years central banks will stop printing and issuing physical currency. The trend and pressure will be to come up with some form of National digital currency. It's coming, you can feel it in the air.

OK but what happens when the grid goes for a dump like 15 years ago? No shopping, No gas for the ride, No ATMs function, No bill payments and No food to buy. What of our world then and who and what do our dependent asses depend on? Cash is disappearing, the answers to these questions will come soon enough.

What do you think about the future of cash? How much do you carry?

Looking for Saving Ideas so You Can Invest That Cash?

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

All 3 of these books written for Canadians by Canadians.