Call me paranoid, but i need cash @ home to feel safe...
A nice wad of cash too - like all rubberbanded and stuff ;) It's all about feeling safe these days, and this helps me to do just that. And we all have our own "right" amounts. Some feel good w/ $100 tucked away, while others have $1,000 locked down somewhere. Sure you won't be earning interest on it, but it's really about feeling comfortable here.
For me, $500 does the trick. All in ones, twenties, tens, and fives too - nice and easy to spend if needed. I used to have them in $100 bills, but you can't really do much with that. I guess the point of it all is to be prepared just in case one of those "what if" scenarios actually occurs, ya know? Just like the Boy Scouts say!
I took some time and conjured up a few of those situations, in order of importance:
For me, $500 does the trick. All in ones, twenties, tens, and fives too - nice and easy to spend if needed. I used to have them in $100 bills, but you can't really do much with that. I guess the point of it all is to be prepared just in case one of those "what if" scenarios actually occurs, ya know? Just like the Boy Scouts say!
I took some time and conjured up a few of those situations, in order of importance:
- The house is burning down - Naturally, we get the H outta there asap. But say we have 30 seconds to grab a few things? Well, you better believe i'll swing that safe open and grab the stash along w/ our passports, birth/marriage certificates, and anything else in there that would fit in our pockets.
- We run out of money in all bank accounts - Scary! I would never wish this on anyone, but it's still a possibility. It would be nice knowing there's $500 as a super duper emergency fund.
- All electricity goes out nationwide - no atms, no internets, no way of getting your cash. Of course, i suppose even having the cash in hand would be pointless since the places you'd be giving it too would be down too.....but it would still make me feel better :)
- You don't have change for the pizza man/plumber - this may sound silly, but i've had to borrow from this a number of times! That's another reason why breaking down the denominations like that are good - no one can use a $100 bill!
- An emergency splurge is due - This could happen if you convince me that $500 in a safe is pointless. In this case, i can go on a spending binge! haha.. i keed, i keeed.
- Any other crazy situation you can't predict - I'd write what they were, but naturally i can't predict them ;)
Labels: emergency funds, money management
posted by J. Money at
11:02 AM
18 Comments:
Interesting, I keep almost no cash at home. I have a bucket of change, and some ones right now cause my stupid brother paid me back $100 in a bundle of ones (works at a bank).
I guess I figure there is a way I will get by without it. If things are that desperate then there are more problems than access to cash.
I know when Ike came rolling through there were issues with getting cash, and some grocery stores were only taking cash payments, and only letting in like 5 people at a time. So I just stuck it out for a while and pretty quickly we were back in the world of now. The places that were necesary had generators and were able to operate pretty quickly.
I have also heard people use the argument that if all the banks failed you would still have some cash, but with current monetary policy if all the banks failed, then most likely your cash will be worthless anyway, might make good kindling for your fireplace.
I've read a number of financial bloggers who keep a certain amount of ready cash at home. Right now I don't - simply because I don't have much ready cash! But when things settle down I would like to keep a small fund "just in case."
yeah, all great points Philip...and that's funny as hell that your brother (stupid brother) paid you in $1s! haha...i've heard there's a certain place you can go to get rid of them ;) but wouldn't be all that frugal of ya.
@Dawn - i hear that! i actually forgot to mention where i actually got that $ from: Poker! A couple years back we had a weekly Texas Hold'em tournament, and whenever i won i just kept the money aside....it adds up over time ;)
I love that your actually honest about using this money for pizza sometimes (of course and then paying it back)! I am all for saving money and being frugal, and trying hard to not dip into emergency funds and such, but when people have a damn near heart attack over it makes me laugh.
I am still working to pay off more debt before I decide to keep some cash at home, but I agree, having a couple hundred dollars would be comforting. Just so I know its there if ever needed at the flip of a switch!
when i head overseas, i'll probably end up doing that - keeping a bundle of cash at home. but for now, i really don't. i feel like when i get to the point where i can't use credit or can't get cash, i'll have bigger things to worry about!
$500 is a great number to keep around --- we have a hundy but nothing more then that at this moment. well - actually we have like $100 in an envelope, but that is for groceries for the rest of November, maybe I should throw that remainder into the cash stash...
I rarely have cash. Right now I have $23, that's it! Whenever I do have cash, I swear my kids can smell it on me and end up needing me to give them money for this or that so I just avoid having cash.
I've tried to keep one thousand dollars cash in the gun safe for emergencies but my husband always ends up tapping it until it's dried up. I think the money calls his name or something and he can't rest until it's all gone.
Having cash on hand for an emergency would be nice if my family left it alone. I wish I had a pizza man but we don't have delivery! :(
I would love to have some cash on hand. What if my wallet was stolen or lost on a Saturday after the bank was closed. It did happen to me once where I lost my wallet on the weekend. I would need some cash to tide me over until I get to a bank and get things sorted out. And it's just a nice security. Right now, all I have in change. I would love to just keep $50 or $100 on hand.
I work in a mostly cash business (it's a Mars-Venus thing: women tend to prefer plastic and checks, men prefer cash...most of my clients are male), so I've usually got way more cash in the house than I'm comfortable with because I hate standing in line at the bank and I don't trust the ATM with a cash deposit. With business being slow, I no longer have ridiculous wads of it in the fireproof box these days - so no point hunting me down and mugging me on the way to the bank!
Plus, as I blogged recently, I'm the "KTM" - family gives me checks, I give them cash...usually because they're too disorganized to have taken money out at their credit unions before traveling and don't want to get ripped off for transaction fees.
I always keep cash at home for no particular reason, it is just there in case I need it. What I spend the cash on varies depending on the circumstances. My goal is to not touch, but at the same time to feel good knowing that if I did need I had it close by.
Interesting. I keep no cash at home at all - I hardly ever have any in my wallet, I live an almost cash-free existance! It's so interesting to see the difference between people in the US and elsewhere when it comes to planning for national emergencies. LIke with having bottled water and tinned food on hand, which is kind of the same idea as having cash I guess.
it's so cool hearing everyone's views on this stuff. sometimes i think everyone feels the same way i do about a subject - cuz i'm so used to it - so whenever comments differ a lot it always surprises me! but that's what's so great about this crazy world of ours - we all have our own ideas and do what makes us feel comfortable :)
@PJ - most definitely, if i don't "pay it back" within 24 hours i go crazy - it's pretty weird actually. i guess it just naggs at me.
@messy - haha, that's too funny...being a guy, and a kid myself really, i can totally see that happening :) i'm pretty amazed that i've been able to keep $500 for so long now. it's been a good 5 years so far!
@moneymate kate - yeah, i actually just read that posting of yours - KTM! i love it :)
I usually have a couple hundred - but in big bills. I think I'll gradually squirel away some smaller bills; you are totally right about not being able to break larger bills in a real emergency.
I keep a couple hundred at home, but all in big bills. You're right about them not being as flexible in emergencies, so I think I'll work toward stashing some smaller bills, too.
It's funny. I'm someone who always needs cash on my person. I don't feel secure without it for many of the same reasons you listed. I just never thought of keeping cash at home. I'm probably going to start a stash.
Yes, my wife and I have a few hundred dollars in a fireproof safe at home. Only to be used in case of emergency though - not to buy pizza.
hell yeah, keeping a few George Washingtons @ home def. keeps you feeling good :) you really don't ever know when it'll come in handy.
Ha, Ha. We started this idea this year too (last month) and then we had to use it 3 weeks later. I had a $700 car repair bill after I broke the side mirror on my suburban. Who knew those suckers were so expensive? Anyway, the $500 emergency cash softened the blow when the bill came due. Now I have to rebuild it next month. :-)
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