Why you should always have Shs300,000 cash on you in the digital payment age

The top reason financial experts cite for having cash is unexpected events and emergencies. According to Donnie Rand, a finance manager, "an average person should have $100 (Shs374,364) to $300 (1,123,094) in cash on hand. It will be enough for their daily expenses."

Finance experts weigh in on why having cash is still a great choice in a fast-rising digital payment world. Plus tips on how to manage that cash.

Cut on digital transactions expenses

Using digital payment services comes with a lot of costs in form of charges and taxes. Each transaction is charged separately which increases overall costs over time and payments. Doing a one-time withdrawal can significantly reduce these costs.

However, when you withdraw, avoid spending all the money before you withdraw again.

"This stash should be replenished as soon as you use it. Normally, $100 is enough for one day's expenses, so you might have to restock daily," Rand adds.

Manage spending habits

Consider your daily spending habits when deciding how much cash to have at hand. Having a set amount of cash can help you manage your expenditure and also help you budget. This can be hard to do with online payment as it can be difficult to account for charges and taxes.

The amount you decide on may change depending on your circumstances.

"Maintaining at least a day's worth of expenses in cash is a smart approach. I advise considering how much money you need to go through a typical 24-hour period, though this can change depending on your daily spending habits," Steven Holmes, a finance expert, and senior investment advisor at iCash told BestLife.

Unexpected wins

There are instances when cash can get you more convenience than cashless options. You may find financial incentives for customers paying cash like discounts. You might miss such opportunities if you don't have cash.

It is also a life-saver when traveling because some parts are not yet integrated with cashless options.

Keep a standard amount

Avoid having too much money as it can make you vulnerable to theft, losing too much, and damage from fires or water. Cash doesn't earn interest so keep enough that doesn't cut you off from big interests.

Store some cash at home

Along with money at hand, you should have some cash stashed away at home.

"An additional $1,000 should be kept stored away in a safe or lock-box at home. In ideal circumstances, this $1,000 will be a starting point that you will then be able to build upon, to the point where you have enough cash savings to cover three to six months' expenses," says Natalie Warb, a financial expert at CouponBirds.