As the US becomes more and more a cashless society, is it really necessary to have cash at all? In many instances, there may be no reason, but one time that cash is king is when there is an emergency where normal outlets that dispense cash are not available and credit systems may be offline such as with Hurricane Katrina. This begs the question of how much cash one should keep on hand for such emergencies as this reader asks:
I currently keep all my money in the bank or in other investments. The only cash I have on hand is what is in my wallet. This is not a problem because there are plenty of places I can get cash if I need it. However, I was talking with a friend who said that she always keeps $500 in cash at home in case of a natural disaster or some other emergency where getting cash from ATMs or other places may not be possible.
I have been thinking about this and it seems to be a good idea. I’m wondering how much cash I should keep at home? Is there a minimum amount that I should have on hand? Is $500 enough or should I keep $1000? Is there any way to determine this?
How much money do you keep at home and how did you decide on that amount?