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I'm not sure if this is the right subforum to ask this question. If not, can a mod move this to the correct subforum?
For example, i have watched a few documentaries or seen a few scenes where certain people would mention how they have no bank accounts and deal everything in cash. First off, how does someone like that even do things? Example such as paying rent or doing anything like that. Or even buying someone online that would require a debit card for example. Because even if you buy amazon cards, well you have to pay via debit or credit card.
Also it seems like people like that have their own cars as well. How is that even possible? Do they do it under someone else's they know name? Then again, how would insurance work for something like that. I know cash is king when you can spend it on anything you want etc like food, clothes, going out etc. But obviously someone can't buy property or anything like that or invest in stocks etc. But how do these people even function is what im curious about. Like if they have to pay electricity bill, are they paying rent to someone in cash so no one knows they live there? Or they live with someone close to them and pay them rent? I always been curious about this. Also seems like certain people have nice cars as well who seem to be like this in documentaries. So how is this possible since they have no credit?
This is extremely common in immigrant communities, including Korean, Chinese and Russian, of which I am personally familiar with.
Basically the idea is that they don't trust banks and that they can make more money doing everything under the table.
It's a little short sighted though as social security has to be considered as well as tax evasion.
All in all, you'd be surprised how many people operate under the table.
You'd be surprised how many ways they try and cheat the system.
Also, you can have bank accounts, you just have to be careful with them and not get audited. The IRS is not going to go after a small fish for no reason.
I'm not sure if this is the right subforum to ask this question. If not, can a mod move this to the correct subforum?
For example, i have watched a few documentaries or seen a few scenes where certain people would mention how they have no bank accounts and deal everything in cash. First off, how does someone like that even do things? Example such as paying rent or doing anything like that. Or even buying someone online that would require a debit card for example. Because even if you buy amazon cards, well you have to pay via debit or credit card.
Also it seems like people like that have their own cars as well. How is that even possible? Do they do it under someone else's they know name? Then again, how would insurance work for something like that. I know cash is king when you can spend it on anything you want etc like food, clothes, going out etc. But obviously someone can't buy property or anything like that or invest in stocks etc. But how do these people even function is what im curious about. Like if they have to pay electricity bill, are they paying rent to someone in cash so no one knows they live there? Or they live with someone close to them and pay them rent? I always been curious about this. Also seems like certain people have nice cars as well who seem to be like this in documentaries. So how is this possible since they have no credit?
Simple.
They cash their checks at stores that will cash paychecks, and they load debit cards or buy prepaid cards or get money orders to pay bills that require something other than cash.
Everything else is done in cash.
If they need anything else, they can do with those items i mentioned and never have enough left over to put in the bank.
If they get paid in cash, same thing.
If they are immigrants, they probably wire money to the family in the home countries.
That would be the only reason they'd ever need a bank, but other wire services work too.
While my mother-in-law is above board (owns a legit business), she's Hyper scared of buying anything with credit online. 100% of her "credit card" purchases done over the internet are done with refillable debit cards (GreenDot), which are anonymous.
As for things like rent, you rent from a more sketchy landlord who takes cash. Or you pay with USPS money orders (again, anonymous so long as you stay under whatever their limits are for reporting, used to be $3500), most landlords are fine with those. Or, you rent a room in a house where it's cash (I did this for a long time, just because it was Cheap)... moving on up to living in a vehicle, squatting, stealth camping, etc...
As for buying cars, buy used/second hand. I've had Zero issue in taking cash when selling, so long as we did it at my bank where they ran the bills through their machine (free service for the account holder usually). Insurance doesn't care if you have a bank account, LOTS of local brokers everywhere who will gladly take cash.
Same is true for buying property, a little more work but there are always people willing to take cash.
For those who live BIG with no credit cards/bank accounts, they slowly buy more and more expensive items (art, gold, vehicles) by trading something of lower value and adding cash.
While my mother-in-law is above board (owns a legit business), she's Hyper scared of buying anything with credit online. 100% of her "credit card" purchases done over the internet are done with refillable debit cards (GreenDot), which are anonymous.
As for things like rent, you rent from a more sketchy landlord who takes cash. Or you pay with USPS money orders (again, anonymous so long as you stay under whatever their limits are for reporting, used to be $3500), most landlords are fine with those. Or, you rent a room in a house where it's cash (I did this for a long time, just because it was Cheap)... moving on up to living in a vehicle, squatting, stealth camping, etc...
As for buying cars, buy used/second hand. I've had Zero issue in taking cash when selling, so long as we did it at my bank where they ran the bills through their machine (free service for the account holder usually). Insurance doesn't care if you have a bank account, LOTS of local brokers everywhere who will gladly take cash.
Same is true for buying property, a little more work but there are always people willing to take cash.
For those who live BIG with no credit cards/bank accounts, they slowly buy more and more expensive items (art, gold, vehicles) by trading something of lower value and adding cash.
I know somebody, not well, who has a large stake in a successful business, and is thinking of buying a property for speculation, yet is on Medicaid!
How do you do that, I have no idea. But they do.
My impression is that the IRS is pretty much a joke and a paper tiger and only goes after you if you wave your assets in front of their face and beg for them to come after you.
But I would be interested to know what kind of activity triggers an investigation...
You know, worldwide almost 2B adults don't have bank account and they live just fine.
There might be many reasons why people in the US don't have bank account: people who live in very remote areas, far away from any cities with banks. They don't have internet either. So, why have money in the bank if they have hard time to access it?
Others do not make enough money to open a bank account. Free checking accounts are hard to find.
Some just do not have credit cards by choice.
Until society goes cashless, cash is still an option for day-to-day expenses. And when they really need to use credit card, they can get a prepaid.
Building credit isn't a priority for everyone and some people even go out of their way to avoid having a credit score.
While my mother-in-law is above board (owns a legit business), she's Hyper scared of buying anything with credit online. 100% of her "credit card" purchases done over the internet are done with refillable debit cards (GreenDot), which are anonymous.
FYI refillable green dot cards are not anonymous. You must register using your correct name and SSN. The only cards that are anonymous are the non-refillable.
The way the non-refillable work is they are like gift cards. You purchase them up to a value of $500 with cash and then can register them online to any name/address you want. Can be totally fictitious.
I'm not sure if this is the right subforum to ask this question. If not, can a mod move this to the correct subforum?
For example, i have watched a few documentaries or seen a few scenes where certain people would mention how they have no bank accounts and deal everything in cash. First off, how does someone like that even do things? Example such as paying rent or doing anything like that. Or even buying someone online that would require a debit card for example. Because even if you buy amazon cards, well you have to pay via debit or credit card.
Also it seems like people like that have their own cars as well. How is that even possible? Do they do it under someone else's they know name? Then again, how would insurance work for something like that. I know cash is king when you can spend it on anything you want etc like food, clothes, going out etc. But obviously someone can't buy property or anything like that or invest in stocks etc. But how do these people even function is what im curious about. Like if they have to pay electricity bill, are they paying rent to someone in cash so no one knows they live there? Or they live with someone close to them and pay them rent? I always been curious about this. Also seems like certain people have nice cars as well who seem to be like this in documentaries. So how is this possible since they have no credit?
There are landlords that take rental payments in cash, believe it or not. There are actually very few things that truly cannot be paid for in cash, (for example, "E-Z Pass only" toll lanes) and even for those things, there is usually a way around the issue, such as prepaid debit cards. Online shopping is another tricky one, but is not impossible, and at any rate brick and mortar stores are still an option for most things, certainly the common necessities of life.
I knew a man who felt 'taking a number' is the first step to losing your freedom. He did not have a SS card, drivers license, draft card, bank account, etc.
Lived in a old trailer on his friends/employers acreage, worked for donations of food, clothing, etc. as well as cash. Very carefree and said he will just adjust to 'changes in the world' as needed.
A nice man with a different view point than most.
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