Peoples of Pearler — Esteban

“I grew up in a cashless society. Having owned my own debit card since I was 13, it was at that time, the pocket money I once physically accumulated, drifted away electronically. I didn’t hold the cash in my hand or see it disappear every time I bought a snack on my way home from school. I didn’t have an app telling me how much money was in my account, comparing my savings to expenses. I remained largely unaware of how much money I had until my first declined purchase” — Esteban

Long ago, someone came up with the nifty idea of a small piece of paper representing exchangeable value. This later led to the idea of a bank. Which has guided us to where we are now in 2019, in which most transactions are cashless and progressive countries like Denmark have decided to stop printing banknotes and cash altogether.

Beware, though super convenient, cashless transactions can lead us to spend more money than we ever wanted to. It desensitises us to allow our money to drift away and with genius ideas like ‘tap and go’, we accept the inevitable of surged pricing.

Let’s look at the example of Uber. Even if you always avoid Uber’s surged prices during high demand, you’re not necessarily saving money on transport costs overall. While it is true that Uber’s base rate is a little cheaper than a taxi’s, (about 20%) how much more do you use Uber to get around?

Let’s say that you actually use Uber and other ride sharing apps significantly more. Basing it off the average person, you probably spend a whole lot more money on transport all together, when compared against the days of Taxi only. And what’s more, you probably don’t even share rides that much anyways with Uber completely changing your transportation habits. Allowing you to dart from party to party, appointment to appointment, without checking if your mate is going in the same direction and with no set plan on how to structure the day. Falling accustomed to the sheer convenience of Uber, you’ve put little to no thought as to whether you can actually afford it in the first place.

While we at pearler are all about the transition towards a cashless, convenience society, do not let it come at the expense of your budget and rational decision making!

Disclaimer: At pearler, we pride ourselves on the quality of the financial advice we give, however, this advice has not been tailored for you. You may have unique financial goals, circumstances or needs which make this advice inappropriate, and it is important that you know whether you do. If you’re unsure we urge you to speak to someone you trust who is competent with money and understands your individual needs, whether they be a trusted friend or professional.