January always feels like a long month but it’s now behind us. The festivities are over and for many of us, January or even February are the months where we pick up the bill/check. This year has felt a little bit different though. The champagne corks have been popping for a little longer than usual. Many countries are coming out of the latest wave of Covid. In Ireland, where I live, we have experienced something of a “Freedom Day” with a big bang approach to unwinding restrictions. Our neighbours in the UK are already watching the sequel “Freedom Day 2”. At long last there has been something to celebrate in Mid-January.

 

However, despite my positivity, I can see storm clouds rolling in from the horizon. Financial impacts of pandemic are starting to squeeze. The highest inflation for a decade or more, new taxes, supply chain difficulties, record energy prices, increased international tensions, cyber-attacks etc.

 

It hasn’t taken long for the feel-good factor to drain away. As the mythical Irish philosopher ‘Murphy’ once said “The light at the end of the tunnel is the headlamp of the oncoming train” – Murphy was an optimist.

In times of uncertainty particularly in the face of rising costs of living, we typically tighten our belt, but paradoxically we all need to spend money to get economy’s going again. So, I guess, it is all about getting the most out of our money.

 

Here are my 3 simple tips for 2022 that will help me spend my money and save money at the same time:

 

1. Budget

• It is obvious to say that budgeting my monthly spend will help me manage my spend and in turn save me money. Unfortunately, my credit card, my little “flexible friend”, is exactly that. It is a little too flexible. Temptation is everywhere, and risk of compulsive spending is ever present. How do I make it easier to budget? Well, if I use cash, I can clearly see the money going out of my wallet and I get the visual trigger to stop myself.

 

2. Reduce Costs

• Again, it is an obvious one. If I reduce my costs, then I will save money. But my trouble this year is that inflation is rising, and my cost are increasing all around me. What can I do? Well, if I use cash, there are no additional fees to pay. There are fees associated with electronic payments everywhere and many times we do not always see it. Even my local Chinese takeaway is charging me 40 cents to place an order online and pay with my card these days
• I recently got frustrated with an increase in the cost of a children’s entertainment ride at my local shopping mall. No way to pay with cash and there appeared to be an unusual 40 cent increase / fee associated with it - 
• Oh…….and in case I forget to mention it. If I budget well (using cash), I do not go into debt, and in turn, I do not pay the fees associated with debt.

 

3. Protect what’s mine and become anonymous

• I am talking about anonymity. But not the type of anonymity which avoids the taxman / IRS. Just don’t give unauthorised access to my money. In the past year, I have had 3. warnings from various sources (particularly Google) telling me that certain passwords have been compromised. The more we move on-line, the more we hear about digital crime. Media coverage of huge orchestrated cyber-attacks and of deficiencies in IT Security spending is all too common. Using cash decreases my digital footprint and it helps me to protect what’s mine.

So, these are my 3 very simple steps to spend my cash whilst saving cash, but there are many other reasons. I recommend reading this article from Readers Digest. The problem is that there are voices out there that are trying to kill off cash.

 

Why are the banknotes / bills and coins so important to me?

 

Well, they are important to everyone. We just seem to have forgotten about it during the craziness of the pandemic. Let’s take Brexit as an example.

 

Living in Ireland, I have watched the Brexit debate for almost 6 years. Now, you do not need to know ………. or even understand the details of Brexit, but for me, one strapline used by the “leave” campaign really resonated.

 

“Take back control of our borders, our money and our laws”.

 

British people are unbelievably proud of their currency. The thought of having the Euro (a banknote without the “Queen’s” image on it) being forced upon the population was just never going to happen. The Pound is sacred.

Fast forward to today, and card transactions have now overtaken cash transactions in the UK. To me, there no longer appears to be the same type of desire to protect the pound note or pound coin as there was in the past. Or at least it is not at the forefront of people’s minds now. It is a similar story all around the world

 

So, my call to action to us all would be

• Let’s get back to believing in our currency – use our banknotes and coins to save our money (our wealth) ……and to save our money (the banknotes and coins we treasure).
• Request the option of payment choice – Insist that the retailers stop rejecting cash as a form of payment on the grounds of health. The data is flawed and today, there are multiple choices for retailers to use automation devices to ensure staff and customers can deal with “contactless cash” (or the ability to take cash and give cash without the need for staff to touch it).