Do You Have Too Much Cash? 16 Things You Could Be Doing With Cash Today

Gabrielle Reeder

Published:

certificates of deposit
credit: depositphotos

What do you do with cash? Our society favors digital money over cash, though that doesn’t take away cash’s value in today’s market. Favorable ways to deal with this invaluable resource include stashing excess funds into a savings account or paying off high-interest debt. Folks also enjoy using cash to make large purchases like a house or a car or adding a bonus to their retirement fund. How else can you use cash?

1. Pay Off Debt

Young man calculating income and debt
Image Credit: Shutterstock.

In 2023, the world hit a record-breaking $97 trillion dollars of debt. As a society, we live under a metaphorical blanket of all-consuming debt. However, you needn’t let the existence of debt bring your mood down. Many people tend to have an extreme amount of debt paired with extra cash. If that scenario applies to you, put that extra cash toward high-interest debt keeping you submerged below the surface. Interest accrues over time, latching onto higher rates with each passing year, so get ahead of the multiplying debt.  

2. Emergency Fund

Emergency fund
Credit: Depositphotos

Designate an emergency fund you only touch in case of emergencies. Here’s a real-time example. I live in St. Petersburg, Florida, one of the landing destinations on Hurricane Helene’s warpath. The Hurricane destroyed our home’s appearance, dragging sand from the beach through the streets, washing animals onto the shore, and upsetting the order of everything. Several friends’ homes were flooded, forcing them to find temporary homes during their home repairs. One of my friends mentioned how she stacks her cash tips in a safe space, only using it in situations like this one. 

3. Stashing in An Emergency Fund

credit: depositphotos

You can also place your money into a savings account. This method requires a trip to the bank or ATM, where you deposit the extra cash into the account. You can mark this account as a digital emergency fund to use in case of emergencies, or you can view it as an account to fund the future. 

4. High Yield Savings Account

easy ways to save
credit: depositphotos

A high-yield savings account adds higher interest rates than a regular savings account, multiplying money at a quicker pace. The accounts operate on an APY, or an annual percentage yield, pinpointing the interest amount accrued over one year. An example sees an HYSA with a 10% APY. Say you add $10,000 cash to that account with a 10% APY. A year passes, and you now have $11,000 in the account. All you did was make one deposit months prior.

5. Retirement Fund

Vanguard ETFs for a Comfortable Retirement
credit: depositphotos

Take care of your future self with a little bit of TLC. The U.S. Department of Labor reports that an individual under 50 years old can add up to $6,500 to a private retirement account each year. Those over the age of 50 experience higher freedom with an ability to add even more each year. Don’t have an established retirement fund yet? That’s okay! Kickstart your savings with an unofficial retirement savings account. As long as you know the purpose of the account, transfer the funds later. 

6. Shopping 

grocery shopping
credit: depositphotos

The equivalent of cash back on a credit card is a cash discount. Places like department stores, salons, and grocery stores offer cash discounts, an incentive for the customer to pay in cash for a lower price of services. Giving cash to a store provides the company with an in-demand resource and can mitigate credit card processing fees. Having an overload of cash can save you money on everyday items like groceries or treatments like pedicures or haircuts.

7. Spend it On Yourself 

credit: Shutterstock

There’s no harm in indulging a little bit. Hey, you earned the money. Why not treat yourself to a spa day or a luxurious shopping trip? Dye your hair bright pink like you always wanted to. Get that tattoo decorating all of your Pinterest boards. To minimize overspending excess cash, keep a log book or limit yourself to an expenditure amount.

8. Buy A Car

Big Gifts
credit: depositphotos

The moment you buy a car, it drops in value. The second it leaves the lot, the price can drop 30%, meaning, yes, you have a new car, but if you want to sell the car in a few years, you won’t get your money back. As you drive this new car around, the value decreases, matched with rising interest rates, which just adds debt to the scenario. People who pay for cars in cash circumvent the idea of paying increasing interest on an item with decreasing value. They forego the interest rates altogether, settling on a fixed price at the point of purchase.  

9. Buy a House

Man buying house
Image Credit: Shutterstock.

The housing market is a complicated, expensive one, yet those with the financial stability to purchase houses in cash navigate the expanding interest rates and inflating mortgage prices. The housing market works like the automobile market. Buyers skirt around interest rates while speeding up the buying process without piles upon piles of paperwork and slimmer, quicker closing rates. Paying for a home in cash ensures that you own every part of that house. You aren’t borrowing from an agency, and you are fully responsible for everything happening in and around the house. You have full discretion to add on, reconstruct, rebuild, decorate any way you wish.

10. Invest

Investment Banker
credit: depositphotos

Investing contributes to expanding wealth. Investments make money over time, adding interest and value to a base amount. The basic definition of investing finds someone devoting a set amount of money to growing down the line. Starting out with $5 in an investment account could double or triple over time. On top of growing money, investing gives investors a cushion for emergencies or family members. Finding various streams of income benefits investors with tax breaks, too. 

11. Medical Treatment 

Woman performing medical procedure
Image Credit: Shutterstock.

I won’t tiptoe around the issue. Medical treatment is expensive. Even with insurance or healthcare plans, we spend an aggressive amount of money on treatment each year. Medications, procedures, check-ups, and necessary appointments cause us to dole over excess amounts of money to sustain our health. Oftentimes, medical facilities charge patients a lower price for treatment than insurance prices, although the facilities may grumble about the cash payment. 

12. Pay Off Student Loans

credit: depositphotos

I went to college with people who laughed about the amount of loans they’d need to pay back post-graduation. The base-level loans matched with escalating interest find these classmates $150,000 deep in student loans. Paying off student loans, or paying money toward the loans, is a great way to use extra cash. Decrease the money owed to the government to increase the money you spend on your well-being. 

13. Set Up a Child Fund 

generational wealth
credit: depositphotos

Maybe you already have children, or maybe you wish to one day have children. Why not jumpstart a savings account for them? Speak with your bank about a notice savings account or a locked account where you can add money as you wish, but you can’t access the money until a certain time. Though a notice savings account unleashes stricter methods for withdrawal than a regular savings account, it is a fabulous way to set aside money without thinking of the account’s existence. 

14. School Fund 

Teacher helping student
Image Credit: Shutterstock.

Apply extra cash toward a schooling fund. Whether that means a college fund, a firefighting certification fund, or a class at the local botany shop teaching participants how to make an ointment from scratch, using cash for schooling can decrease trepidations related to tuition. Avoid the constant hounding from the Bursar’s office, inquiring about overdue tuition, threatening to kick you out if you don’t turn in next month’s payment the day it’s due. Simply turn over your tuition and enjoy the teacher’s lesson to full capacity.

15. Tax

Teen traveling in taxi
Image Credit: Shutterstock.

A colleague of mine (a freelance worker) jots down how much taxes she owes on each job she completes and removes that money from her paycheck. Then, she sets aside the cash, waiting for quarterly taxes and yearly tax meetings. She gives that money back to the government, usually overestimating how much she owes, causing her to revel in a forgotten cash stash. Using cash for taxes permits taxpayers to stay a step ahead of the government, remaining on top of their tax expectations. 

16. Travel

Travel Couple
credit: depositphotos

The best form of money to use on a trip is physical, papery cash. Traveling with cash avoids credit card companies or banks adding international purchase fees to your account or causing the bank to freeze your card for suspicious purchases in an unknown area. When you’re caught up on bills, have a plan for debt, and need a new experience, grab your cash and book a trip! 

Leave a Comment

Flipboard