Perhaps you have seen those documentaries of people trying to live according to a certain rule for some prolongued time: eating only burgers or following a strict vegan diet or following exactly the teachings of the Bible.
In my last video I proposed a reality show following one or two people with the premise they can’t use any financial services other than cash. I think it would be quite dramatic!
I think of myself volunteering for such show. The first thing I need to do is to move to a different flat, one where the landlord accepts cash and doesn’t require a bank transfer: my landlord lives in Scotland and there’s no way I will do a trip every month to pay the rent.
I also would need to quit my job: there is no chance my employer accepts to make the payments other than to a bank account. I would need to get a job in which I can get paid directly in cash (I’m afraid I only know of a couple of industries in which cash is preferred…)
Gone are the debit cards, credit cards, wire transfers, online payments, forex exchanges. I cannot even take the tube or the bus in London, as now they don’t accept cash. And here is a realization: I cannot make payments to any company providing services (e.g., water, electricity, etc). Those companies accept cash payments in bank branches which are financial providers.
I thought of asking a friend to make for me all the necessary payments if I give her the cash, but here is the trap: Any method of payment that involves an intermediary is by itself a financial service. By asking my friend to pay my bills that I cover in cash I am setting up an informal payment service. (I didn’t say the ban covered only formal financial services!).
I need to liquidate all my investments and I need to forego my pension as I cannot take that money out before retirement age. I have small bag of notes and coins that I need to hide somewhere safe. I live in constant fear that it gets stolen.
After a few months I come to terms that I need to move out of the city to a remote place where I can minimise my interactions with others. I probably start living in isolation, and I’m glad I took all those bushcraft courses because it seems I’m going to use those skills.
Perhaps I can get a couple banks, or MasterCard or PayPal to sponsor this show.
Let me get to the bottom of all this:
- They may not be that sexy, but without financial services neither you nor me could function in society.
- I will go as far as saying that without financial services neither you nor me could meet the most basic requirements for a life with a minimum quality and dignity.
- If financial services are essential for you and me, why is it very different for a poor person?