$750 USD
That is how much physical cash you would have if all of the currency circulating in the world were distributed to the world population.
This is why it is naive to think you can go through life without credit, as some debt-free “gurus” want you to do, living on a cash only basis.
On the one hand, this does eliminate the possibility that we will ever see another run on the banks like we did in 1929.
It is also why you cannot go to a bank and withdraw your entire account balance without scheduling it ahead of time. Most banks only allow you to withdraw $5,000 per day (which is why I love my credit union where I have withdrawn up to $20,000 on the spur of the moment).
That said, most people do not walk around with $750 cash on hand. The majority have a few dollars, maybe $100, but the rest is in the bank. And, we have to keep in mind that in poorer countries there is even less cash circulating (when converted to USD). This gives some of the “cash only” crowd an opportunity to have larger cash balances on hand.
For the rest of us, learning how to manage and optimize credit is a must.
Think about the difference between using credit cards to make more money and paying a lot of interest to the credit card company because you cannot pay your balance in full each month.
I cannot tell you how much money I have saved through rewards credit cards. And, as we know, a penny saved is a penny earned.
I also cannot tell you how much I have paid in interest because I was carrying a balance.
I think you would agree that the money saved is a lot more fun!
Using credit strategically is just one module of the Money Mom Academy. And it is a game changer!
What about you? Are you using credit cards to make yourself money or to make the credit card company money?