Cash on hand

[bjl584]

Ok, we all know that you should have at least a 3 to 6 month emergency fund in an account that you can access in times of need. But what about having some cold hard cash on hand for emergencies? How much cash should one have lying around? Right now, I think that I only have a couple hundred in cash around my house.

[jodi]

I never carry cash. Well, hardly ever. I went to the ATM today for spending money, so I have $40 plus the money in my envelopes for groceries and gift shopping. But normally I only keep $20 or less on hand.

[JanH]

We keep some cash in our hurricane supplies. When the power is out, they only take cash. So you need to have some around. Right now, I think there is only a hundred in there. I'll probably start putting a bit more in it, starting next spring for the next season. I think I'd like to have about 300 total in there. We don't dip into it, just leave it for storms and such.

[Daylily]

I don't really keep cash on hand other than what is in the change jar which is at $245. That will be cashed in soon for an upcoming vacation.

I do think perhaps I should start keeping some cash. Thanks for the idea.

[safari]

I usually carry $200-300 in my wallet, but I always pay with a credit card whenever I can, so that cash lasts a long time. I use an ATM maybe once every 3-4 months and withdraw $200 at a time.

[genmed]

We don't carry more than a couple of dollars (<$20, usually $5) at a time. Probably should carry more, but it would just get spent. On vacations, we do tend to carry more cash ($100-200)

[homein2007]

If you're talking about keeping cash available at home for emergency situations (hurricane, earthquake, etc.) remember to keep it in small denominations in case you're trying to do business with someone who can't make change.

In terms of cash that I actually carry in my wallet, I try to keep it to a minimum so that I'm not tempted to spend it. In the city I'm never more than 5 minutes from a Bank of America ATM anyway, so if I think I really need cash, I have a few minutes to walk there to clear my head and give myself the opportunity to change my mind about spending

[PRICEPLUS]

1500 cash on hand for immediate emergencies! It is seperate from the EF as sometimes you can't get to an ATM or a bank!

[Aleta]

I too keep about $1850. When hurricanes hit, you need it and like someone said here you need small denominations as there might not be any change. (No electricity). Also, you never know when you would become ill or have some kind of emergency that would prevent you from going to your bank. You could always direct someone to where the money is. Also, I keep that cash on hand and pay out my cash expenses, including food, birthday cards, small purchases, etc. I then go once a month to the bank and reimburse myself. I just keep track of my expenses during the month.

So if you really think about it, your cash at home could serve as one of your months Emergency Fund, only it is REALLY readily available.

[Broken Arrow]

I have a full emergency fund sitting in a savings account, but I also keep my baby emergency fund in cash at home. So, technically, I have two emergency funds... unless you include my credit card, which would then be three.

But yes, I feel this mix is the best of both worlds so to speak. I am covered for very short term immediate needs with my baby emergency funds, but I am also covered for bigger needs that may crop up, but that would take a couple of days to transfer.

[tinapbeana]

my concept of emergency fund is like a set of nesting russian dolls! please note the following are examples only and i'm not trying to tempt any emergency gods, and i am also knocking on wood as i type!!!

small = i left my lights on and now my car battery is dead! = cash

medium = i fell and broke my arm and half to pay the co-payment at the hospital = credit card

large = OMG we had a huge ice storm and the tree behind my house uprooted and crashed through our roof!!!! now i've gotta buy a big tarp and seal up the house and board the kitties and live in a hotel for a week while i get the roof fixed and i know the insurance will reimburse me eventually but i've gotta have money to take care of it first!!! = THE 'REAL' EMERGENCY FUND aka cash and credit on hand and money in online savings that can be here in 3 days to reimburse me and cover other expenses, and then the money from the insurance company would reimburse the EF.

[dossin1]

None, actually. We have been trying to use cash for groceries and gas and that works out to about $600 per month, but we use that constantly so once it's gone we have to go back to the atm.

[Ima saver]

Since i put only cash in my budget envelopes, I usually have a few thousand in the house. I try not to carry more than about $40 in cash after I fill my car for the week.

[Aleta]

Ima Saver, that's great. I'm like you on keeping enough on hand. Some people probably couldn't do that because they would be tempted to spend it if they see it. Sort of like cigarette quitting ; out of sight - out of mind. But I can see that you are self-directed with disicpline like I am. My DH on the other hand will burn a hole in his pocket where the cash is concerned.

[fairy74]

I keep about $600 cash on hand, when I lived in Florida I kept closer to $2000 on hand for hurricane emergencies

[Broken Arrow]

Originally Posted by tinapbeana

my concept of emergency fund is like a set of nesting russian dolls!

Great analogy! That's essentially how my EFs work as well.

[LateBloomer]

It always bugs me when I use cash, write a check or use my bank debit card, because it isn't until I use one of those that I know that I am really spending money. And I think that's a good thing because I am forced to ask myself about the necessity of the purchase. However, having cash on hand (for me) has been a lot like having really good chocolate in the pantry, when you know it's there, you tend to remember and think about it until it's gone. So, until I become more disciplined, I sparingly keep cash on hand. My goal is to have lots of cash on hand (I wish) and to not give it much thought, then I will know that I have arrived and developed the right attitude about money as a whole.

[nanamom]

i usually have a couple hundred around for emergencies. I figure if the power really went out credit cards would not really do me alot of good since they couldn't scan them. That would also make it hard to access my EF in the bank.

[Ima saver]

I have been keeping cash in the envelope system for so many years, and I am never tempted to ever use any of it. I have my allowance for the week.

[MonkeyMama]

I probably should have cash but I dislike it. $20 at most on hand.

Oh well - it's a good point - I might put $200 or so aside for emergency - it probably is a good idea. It is earthquake and flood country and all that - you never know.