Keeping Cash at Home a Good Idea for Emergencies
Keeping cash at home is a good idea, a number of financial advisers agree. But how much should you keep stuck under your mattress? And for that matter, should you be sticking it under your mattress at all?
Why Keeping Cash at Home Makes Sense
The number-one reason for keeping cash at home? Emergencies. If catastrophic weather hits, or your area gets slammed by floods, earthquakes, wildfires or other natural disasters, having cash can make it easier to weather the proverbial storm. With cash, you can still pay for basic needs if the power is out and you’re unable to use your credit card or phone app.
How Much Should You Have on Hand
This is where experts’ opinions start to diverge. Some say to keep only $100 to $200 – enough to pay for some gas and maybe a meal delivery. Others suggest keeping $300 to $500 on hand makes sense, to spend at night or two at a hotel, if need be. With the average monthly cost just for food and gas of $1,000 in the U.S., some suggest more. But most agree the upper limit for cash on hand should be that $1,000.
Keep in mind that in addition to having cash, you might want to prepare for disaster by keeping non-perishable food and other staples on hand, as well.
Keeping Cash at Home and Keeping It Safe
Cash is the most insecure asset you can have – so stashing it under the mattress is not a good idea. You’ll want to keep your cash safe, and the best place to do that? In a safe. You’ll want to make sure it’s waterproof and fireproof to protect against disaster. As well, you’ll want to bolt your safe to the floor to guard against theft. And besides keeping your currency intact, a safe can protect other valuables as well.
In addition to fire, flood and theft, another danger could work against you if you’re keeping cash at home. And that’s the challenge not to spend it.
Links
Popular Mechanics has an article with its suggestions for the Six Best Fireproof Safes.
Lastly, you can learn more about our services here!
Recent Comments