Six Drawbacks of Choosing Not to Have a Bank Account – Part 2
On our last post, we discussed the first three out of six different ways in which not having and using a bank account can directly harm your financial life. Some of the first things we mentioned were related to acquiring help from banks for example, in the way of personal loans and such, as well as the difficulty in cashing checks and making payments to people or companies located elsewhere.
Today we take a look at the remaining three things that can make your life far more difficult if you choose not to use a bank account.
Ready, let’s get going:
4. Lack of Protection:
One of the major advantages of using a bank to manage your savings and keep your money, is that banks and other authorized financial entities are FDIC-insured, which instantly guarantees your money’s safety and accessibility if anything out of the ordinary happens. Here is an example: Yesterday in the new there was a lady whose house burnt down due to a few careless youngsters that forgot to put out their cigarettes. She was crying unconsolably because not only her home was lost, but because she had her life’s savings hidden under her mattress, which of course burnt down with everything else. If you keep your money with you at home, the same could happen, or it could be robbed and such, forcing your to acquire personal loans to pay back for everything lost. If however, any of these happens to your bank or financial institution, your money is protected and insured.
5. You Can’t Record Your Spending:
If you decide to go csh-only and avoid banks completely, that means you will not have a chance to use even debit cards that often. So what happens if you want to keep track of all your expenses? Well, you will have to write down everything you spend and where you spend it or you will not be able to have accurate financial records for planning your future expenses and such. With a bank account and a credit or debit card associated to it, you will benefit from monthly statements that inform you exactly what you spent and how you spent it. What is even worse, if at any point in your life you plan to get a personal loan or to buy a home, you not having these bank statements will make it impossible for you.
6. Consider All Your Options:
Even if you are one of the few people in the world who have lived without any problems without a bank account, don’t forget that there still might come a time when you need one either for yourself or perhaps to help someone you love, like for example, if you need to acquire a personal loan for a friend or relative.
That said, if you still prefer to go without a bank account, there are still several options that you could look for and that are even less expensive than managing a bank account or than asking for a personal loan. Other alternatives within banks are opening a bank account that is priced lower than a regular one or one that requires minimum maintenance. Never forget that yo are free to look around for the best deal you can find, and banks and other authorized financial institutions are mandated to provide you with all the relevant information you may require for you to make an informed decision.
And there you go. A series a difficulties that you might run into if you choose not to have a bank account. In the end, it doesn’t hurt to look around, and remember that thanks to the great diversity that the financial market offers, you might actually end up finding something that suits you.