Benefits of going cashless

Imagine it is a sunny weekend, and you are out enjoying a day of shopping with friends. You spot a fantastic deal on a gadget you have been eyeing but then realise you have left your wallet at home. This is where going cashless truly shines. Adopting digital payments eliminates the risk of losing cash and simplifies your transactions. Let's discuss some benefits of going cashless.

Here are the five reasons to embrace a cashless lifestyle:

1. Your Money is Safe

Storing money in a bank account, assets, or investments significantly reduces the risk of loss, theft, or damage compared to handling cash. India’s secure banking infrastructure, including encryption and fraud detection systems, ensures your funds are well-protected. Unlike physical cash, which can be lost or stolen, digital transactions and bank accounts offer multiple layers of security, making it almost impossible for your money to fall into the wrong hands.

2. Your money grows

You earn interest when you put your money in even a bare-bones savings account. Plus, you have the option of investments like mutual funds and fixed deposits that get you returns over a period. On the other hand, the value of cash or “paper money” diminishes over time due to inflation. 

Imagine you have ₹100 today. With this amount, you can buy a meal at a local restaurant, a movie ticket, or groceries. However, inflation generally raises the cost of goods and services over time. If inflation averages 5% per year, the price of the same meal, movie ticket, or groceries might increase significantly over the next five years.

So, if you save ₹100 and don't invest it, in five years, you might find that ₹100 now buys less than it does today.

3. Better money management

A quick read of the numbers in your bank statement will indicate your income, spending, savings and return on investments. Armed with this information, you can plan for the short--, medium- and long-term future. So you can save up for a holiday in the next three months, a car in the next two years, or your child's education twenty years later.

4. Flexibility

With advanced technology and payment systems at our disposal, going cashless is as good as having cash. You can use your money in several ways, often almost instantaneously. So purchase air tickets, pay off your home loan EMI, or buy a life insurance policy without having to arrange for cash.

5. Lower stress levels

Your grocery store doesn't have change? Time to pay your electricity bill? No problem, there are several cashless options you can use. You won't need to run to an ATM in the heat or stand in line in the rain. In short, you save time, effort, and transportation cost, so you can breathe easily.

Welcoming a cashless lifestyle can improve your financial management. It offers increased security, convenience, and zero stress. By shifting to digital payments and adopting modern financial tools, you protect your money and optimise how you handle your finances.