4 reasons why you should stock up on $100 bills before winter
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But what if something goes wrong? It happens all the time. Banks close, digital payment platforms fail or you lose your debit card. While an increase in spending during the winter months is predictable, the unexpected events are of course unpredictable.
So one thing is clear: many things can happen that will prevent you from using your hard-earned money. So is it a good idea to stock up on $100 bills now? Waiting could mean your money is tied up and you miss out on your planned purchase.
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The $100 bill is the most common currency in circulation in the United States, but also the most hated. Most people generally pick up $100 bills when they want to store cash and not spend it. It's like having a guaranteed savings account in your hands. (Or under your mattress.)
Sure, it can feel unsafe to have cash on hand when you could keep it in a savings account, but your savings aren't always readily available to you. Cash.
Why not twenty-somethings? $20 bills take up a lot more space than hundreds. And if you save a few thousand dollars for the winter, twenty-somethings will need a lot more space. It becomes a massive, unmanageable problem to wade through the 20s when you can only grab a fresh $100.
And if you withdraw hundreds 'just to be safe' and don't end up spending them, it's easier to put them back in the bank.
You may occasionally roll your eyes when you pull out a C-note. You may also have to wait a little longer for your cashier to swipe a fake pen over the bill. But you can rest assured that you have all the money you need to get through an unpredictable winter.
As Tim Peters, Chief Marketing Officer at Enghouse Systems, who works with dozens of financial institutions, notes: “Based on historical norms, we know that people are money hoarders with the advent of uncertainty, securing credit opportunities. An example is 2008, when money circulation increased by 20%.”
Winter is perhaps the most unpredictable time of the year, and becomes more chaotic every year, partly because the climate is changing enormously. Here are just a few reasons to stock up on $100 bills before winter arrives.
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Where we once knew with some certainty what weather we would see in specific regions, those days are gone. Now snowstorms are hitting areas that are not always prepared, leaving millions of people in the freezing cold.
Due to these unexpected weather conditions, banks often have no choice but to close their doors. So while you thought you'd go to the bank for cash on Tuesday, now you can't make big withdrawals.
As Tim says: “Some internal and external factors contribute to disruption of banking services in winter, including snow.”
It's better to have your money ready now before the unexpected happens and you can't.
Then you think you'll use your credit or debit card, right? Wrong. Tim notes that “a US Treasury report found that during stormy weather in 2022, 5% of the US had no capacity to conduct digital payment transactions.”
You don't want to be the person among those 5% who are standing there trying to make a purchase or pay a bill and can't. Remember when millions of people lost power in Houston when the grid went down during a snowstorm in 2021? $100 bills would have been useful to buy things like wood to start fires, gas to fill propane tanks and more.
Suppose you are not in an area prone to stormy weather. You live in Georgia or Mississippi, where snowflakes rarely fall and hurricanes are rare. There are other reasons to keep hundreds on hand, such as holidays.
Maybe you escape the storms and travel to a beautiful island somewhere, or to sunny Southern California. It's always good to have cash on hand when traveling in the winter because you never know who will take your credit card.
Some merchants only accept cash, and you don't want to be turned away because you don't have enough on hand. Cash is still king, and the $100 bill still has value around the world.
As Tim says: “Since people spend a lot of money during the holidays, even without buying a product, it is desirable to have cash so as not to be faced with disappointments when running around credit and debit transactions, especially if the banking systems are not are well built. .”
In short, always travel with hundreds.
Finally, it is just nice to always have that buffer with you, especially in winter. Your energy bill will increase, your expenses will increase and you may be traveling. Having $100 bills on hand means you don't have to dip into your savings or rush to find an open bank.
It is your safety net for the winter, which more and more people have to rely on.
As Dutch Mendenhall, bestselling author and CEO of RADD Companies, reminds us: “Cash can serve as a buffer against high inflation or economic downturns, allowing us to make purchases or investments without having to rely on credit or digital transactions.”
Look, no one says you have to take out all your money and hide it in a safe or in your mattress. But it's a good idea to have a few thousand dollars, or more depending on your personal expenses, on hand. Hundreds allow you to maintain economic power even in the most unpredictable circumstances.
And the last thing you want when the unexpected happens is to lose your economic power.
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This article originally appeared on GOBankingRates.com: I'm a Money Expert: 4 Reasons Why You Should Stock Up on $100 Bills Before Winter
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