Here’s How Much Cash You Need Stashed If a National Emergency Happens

[TrappedinCalifornia]

Here’s How Much Cash You Need Stashed If a National Emergency Happens

...The coronavirus pandemic was a prime example of how something unexpected can have devastating effects on the economy at large and on an individual level, too. While we all hope the worst of it is over, here’s how to be prepared in case it’s not — plus how to set up a fund for unexpected future national emergencies...

Part of being prepared for any contingency, big or small, is having a reserve of emergency cash at your disposal at all times. When you can’t rely on accessing your funds electronically, you’ll need some legal tender to buy food, gas or other necessities.

“Whether it’s Mother Nature or some other disaster out of your control, you always want to be prepared by having some emergency cash on hand,” said Annalee Leonard, an investment advisor representative and president of Mainstay Financial Group. “Banks and ATMs may not be up and running for days after a strong storm. I recommend my clients have three to five days’ worth of spending money, just in case.”...

“The rule of thumb I advise my clients is to keep $1,000 to $2,000 in cash in case banking operations are shut down due to a national emergency or catastrophe,” said Gregory Brinkman, president of Brinkman Financial in Tulsa, Oklahoma...

“There is a price to putting away a large amount of money for a rainy day: That price is inflation, which has averaged about 1 to 2% per year in the last few years,” Prakash said. “To minimize loss from inflation, it’s wise to not keep too much of your emergency fund at home in physical cash. By keeping the bulk of the money in a savings account or a certificate of deposit, you can at least earn some interest on it to counteract inflation.”...

“When you set aside savings — whether for a vacation or for life’s emergencies — you want to be able to get to it quickly but not keep it somewhere that’s too easy to access,” said Chris Hogan, author, financial expert and host of The Chris Hogan Show. “Your money is safe inside a bank. Bank deposits are insured by the FDIC and are protected up to at least $250,000. The best place for your emergency fund is a money market account or savings account. If you want to keep some cash at home, that’s fine, but I don’t recommend cashing out your savings.”...

“Cash is still king across all kinds of crises. Therefore, you want to ensure you have an amount on hand to help you in case it’s necessary for purchasing some necessities,” said Jason Powell, real estate and securities attorney at EstateInvesting.com. “However, you may also want to look into trading some of the cash you have for silver, gold and other assets that may be valuable in the coming year or near future.”...

Cash can be your biggest protection against a national emergency or disaster if circumstances prevent you from withdrawing cash from the bank. It’s kind of like insurance — you pay for it hoping you will never need it. The suggested hiding places should keep your money safe just in case that emergency should unexpectedly pop up...

Kinda all over the place. Have a cash reserve at home, but keep the bulk of your emergency funds in a bank... which won't be accessible during a national emergency or disaster.

Uh... Got it... Ummm... I think.

What say you? How much do you think you should have in case of a national emergency or disaster, in what form, and how does one 'hide' it? Bear in mind that this 'emergency fund' is different than, say, losing a job or a medical issue. This is more along the lines of a major earthquake or hurricane or tornado or volcanic eruption or regional flood or nuclear war or... Joe Biden being reelected... or Kamala Harris taking over for a deceased or dysfunctional Joe Biden or...

[Librarian]

https://www.thebalancemoney.com/how-...y-fund-2388353

3 months expenses in cash.

In a real collapse, who knows? Will currency be accepted? Will prices of things be within that amount (no)?

[rg_1111@yahoo.com]

By the standard I'm a few bucks short.
Really what good is paper money?
You will need to find someone who will take it.
Food and water is more important.

[twinfin]

Some people brag about never using cash. I think having a stash for emergencies is a good idea so I'm in agreement with the authors. How much to set aside and where to keep it is an individual matter but having an emergency stash of some kind is a wise idea.

Recently, a family emergency required out of state travel on a moments notice, on a Sunday. Having a cash reserve made the logistics of the outing more bearable.

[sealocan]

It's a long story, that I won't get into, but in the far past I've collected money from lots of average people, usually middle class to Upper class price range folks, with homes that match.
I was blown away that so many of them do not have cash on hand or hidden someplace in their homes.

And it's all ages too, from a young single folks to elderly couples and everything in between.
No cash on hand, other than maybe a few dollars/ less than $80 cash in their wallet, no hidden money in case electricity goes out and ATMs aren't working... nothing but a credit card, debit card or personal checks.
I'm not a Rockefeller or anything so maybe it's just that I've been through some blackouts, snowstorms, emergencies, and those strange things in life where you might need money quick. Like someone offers you a bargain for cash or a family member friend needs an immediate "loan" (which I always consider a gift that might not get paid back so it's never a big money).
I just don't get it. Have these people never been in an upside down situation or needed cash to make a good deal happen?

I would never tell anyone what amount in cash to have put away someplace safe because everyone's living at a different level but for your own sake have something hidden under the mattress or wherever.

[GW]

It's my belief that at the outset of a financial calamity, cash will be king. Too many folks rely on plastic to get through life and if the system breaks they will be out in the cold. Cash though, will get you into stores that will not be able to perform any other transaction. It is my intention to gather up neighbors and hit said stores to buy up as much as possible while cash is king, then get the goods home and distributed. By bringing a lot of people, all armed, we will have enough intimidation power to dissuade anyone from trying to rob us as we depart the store(s) with our purchases. So yeah, I advise you to keep a few grand in your safe at home. Speaking for myself, the loss of 1% interest is more than offset by knowing I can put my hands on enough cash for most any emergency.
And I'll add that my stash started by putting $20 per payday away.

[Maltese Falcon]

I think about $5K in small denomination bills would be suffficient?

Then you go to 5.56, lol.

.

[VictorFranko]

As far as where to keep your stash, when my home was broken into by knock-knock burglars, they went straight to the master bedroom and concentrated on the woman's side (closet, dresser etc.)
They tossed drawers, checked the nightstand and seemed to lift the mattress for a peek under it.
They also checked the medicine cabinet in the master bath to no avail, I don't even like taking aspirin.

My office/gun room got a bit of attention, they spun the handle on the safe, checked a couple drawers of my desk, opened the closet and pulled out a couple ammo cans and opened them but took nothing.

The TV room seemed to be unlooked at, not even a book on a shelf touched. Years ago, I made a book diversion safe that was empty on one of the bookshelves, totally unnoticed.

The large breakfront in the dining room, again, untouched.

They checked the guest bedroom that obviously wasn't lived in and it would appear they never stepped foot into the kitchen, totally ignoring it.

From this info you should be able to determine where might be the better places to hide your cash at home and where not to hide it.

I think diversion safes are a pretty good idea, they have them from cans of oil and Fix-a-flat for the garage to cans of soup for the kitchen pantry.

Whoever broke into my home wasn't here for long and they certainly weren't going to waste time checking every can of soup on the shelf or can of oil in the garage. The downside to diversion safes is they offer no protection against fire, like a quality, fire-rated safe does.

[flyer898]

The amount fluctuates, but I always have some cash in the gun safe.

[harbormaster]

More is better. What more can anyone say.

[Dirtlaw]

Originally Posted by GW

It's my belief that at the outset of a financial calamity, cash will be king. Too many folks rely on plastic to get through life and if the system breaks they will be out in the cold. Cash though, will get you into stores that will not be able to perform any other transaction. It is my intention to gather up neighbors and hit said stores to buy up as much as possible while cash is king, then get the goods home and distributed. By bringing a lot of people, all armed, we will have enough intimidation power to dissuade anyone from trying to rob us as we depart the store(s) with our purchases. So yeah, I advise you to keep a few grand in your safe at home. Speaking for myself, the loss of 1% interest is more than offset by knowing I can put my hands on enough cash for most any emergency.
And I'll add that my stash started by putting $20 per payday away.

Cash is backed by the credibility of the issuing country. See what I'm saying? Hard assets are backed by their intrinsic value. The dollar has been the "go to" for years. That doesn't mean it can never fail.

[user120312]

I moved to the alternative economy a number of years ago and cash has become a diminished asset as a result. I recently converted bricks to diesel fuel with cash in the middle of that but that was an anomaly. Normally if I have any cash it sits around for months if not years. I rarely use it.



Imagine what was used for decades to manufacture heavy industry items and repair same. Raw materials, equipment, knowledge, skills.


The rest will be the rest.

[GW]

Originally Posted by user120312

I moved to the alternative economy a number of years ago and cash has become a diminished asset as a result. I recently converted bricks to diesel fuel with cash in the middle of that but that was an anomaly. Normally if I have any cash it sits around for months if not years. I rarely use it.



Imagine what was used for decades to manufacture heavy industry items and repair same. Raw materials, equipment, knowledge, skills.


The rest will be the rest.

Note that I said at the outset of a financial collapse.
My plan would be to spend like a drunken sailor on Day 1 and buy up as much as I can while stores/people still think paper money will be good. I do not expect that condition to last so spend it while I can.
Besides It's good to have cash handy should a great deal on a gun or ammo etc come along

[ZapThyCat]

Cash reserve? Why would I invest major resources into the most likely thing to collapse?

The US dollar is scheduled to get the axe during the reset. If there is a collapse, precious metals (silver, gold, lead) will be worth more. If there's not a collapse, just a depression, then greenbacks will have some value still.

[the_tunaman]

I’ve got guns and ammo - why would I need cash on hand?

[223556]

Good info here. I get both sides of an emergency or a full collapse. But all that means is plan accordingly for both.
Cash and goods to barter with are in my arsenal along with protection measures.

[DentonandSasquatchShow]

Obviously having cash on hand is a good idea if you have the means to do so. I keep enough cash to get me through something. Other items to keep are precious metals, ammo and booze. All highly tradable if (when) things really go sideways.

[user120312]

Originally Posted by GW

Note that I said at the outset of a financial collapse.
My plan would be to spend like a drunken sailor on Day 1 and buy up as much as I can while stores/people still think paper money will be good. I do not expect that condition to last so spend it while I can.
Besides It's good to have cash handy should a great deal on a gun or ammo etc come along

TL;DR? Some of us have been prepared for a national emergency for decades. Was it a waste of time and effort? IDK. Perhaps. America, historically, has been a Republic of freedom and individual choice, even if such choices seem nonsensical to others.


I think that's a good strategy for someone who is living life as normal right now and needs to make some big changes. I made those changes years ago, perhaps decades ago when seeing the stench of Communism intruding. I'd opine back in the late 80's or so. That's when I moved towards self-sufficiency and much of the stuff now called 'prepping'.

When Covid hit with its lockdowns and shortages, TBH other than closing my business life on a personal level didn't change. No hoarding, no stockpiling. Everything was already in place. I think the main place I spent all the cash which was already on hand was on diesel fuel in late 2021 when I moved all my cars to Oregon. Else, it just sits around.

Forex, no LP this winter, the furnace has yet to operate. How do I heat the house? Burn the dead trees on the property along with anything else combustible. No cash or money needed. A drum of gas and some two stroke oil have long been in stock. Only concession is some of the SS money gets transferred to PG&E if I want to run lights and a fan on the insert, along with a few other modern conveniences. The cash sits.

In an emergency, I'd pull the disconnect and go off-grid, something I set up 30+ years ago. Gen head on the tractor PTO, diesel fuel in two trucks plus extra in stock and a long established power management plan from decades in industry.

[KrisDSA]

From my own personal experience from on the ground and dealing with Sandy Hook / Katrina / 9-11 $5000.00 at a minimum.

$2000.00 it’s probably more doable for a couple. But it will go very fast.

I would have $2000 in 5&10 another $2000 in 20’s and the last $1000 in 100’s

[GeeBee49]

I keep $8,000 to $10,000 in my gun safe for general emergencies. I think most people have a cash mentality and if there is a breakdown they will take cash for goods or services. I believe this is true because most people don't think like preppers do.
In the event of a total breakdown I'm not sure what type of payment will be acceptable. I guess we'll have to wait and see.

[madland]

I keep $100 of 1's,5's,10's just so I don't have to make change if SHTF or an emergency pops up and the person I'm buying something from decides they don't "have change" and I'm stuck paying extra for some goods.

And a little more cash as well.

[TrappedinCalifornia]

I guess the question comes up: If you're holding "X" amount of cash, where do you keep it?

I know some have said "in the safe." But, given the amounts being discussed, is that really 'the best' place or are there alternatives considered to be better options.

For instance, in 2014, US News proffered... The 5 Best Places to Hide Emergency Cash at Home

Then, in December 2022... 13 Tips and Tricks for Hiding and Storing Money

Also bear in mind that this thread isn't the only one currently talking about cash in case of national emergencies...

Posted yesterday... How Much Cash To Have Stashed at Home at All Times

[GeeBee49]

Originally Posted by TrappedinCalifornia

I guess the question comes up: If you're holding "X" amount of cash, where do you keep it?

I know some of have said "in the safe." But, given the amounts being discussed, is that really 'the best' place or are there alternatives considered to be better options.

I keep six or seven hundred bucks in my dresser drawer just to have some quick spending cash. The much larger emergency cash is in my gun safe because I can't think of a more secure place to keep that amount.

[broadside]

No matter how much cash you keep at home, just remember that your homeowners/renters insurance will not cover cash lost to fire, etc. or severely limit the amount they cover.

[TrailerparkTrash]

Small pint sized bottles of hard liquor and cartons of cigarettes. That will be barter and trade, worth more than gold coins.

[madland]

Originally Posted by TrailerparkTrash

Small pint sized bottles of hard liquor and cartons of cigarettes. That will be barter and trade, worth more than gold coins.

Hard liquor glass bottles will obviously store forever vs small plastic bottles. But what about packs of smokes. I don't smoke but I've thought about storing some for barter/trade..but not sure how to store them so they don't go to waste. TIA.

[TrappedinCalifornia]

Here's what Dave Ramsey said a year ago about keeping cash at home...



It's not about a 'national emergency' and Ramsey admits he's not into the 'prepper' thing.

Just for a bit of clarity, this is what he said in 2018...

...Having some cash on hand is never a bad thing.

When it comes to the portion of your emergency fund you keep at home, I’d recommend just being reasonable.

If you’ve got $10,000 set aside for emergencies, I’m OK with you keeping $5,000 at home in a quality safe.

I wouldn’t put all, or even most of it, in a safe, though.

Again, just make sure your homeowners policy covers anything you might put in there. A strong, fireproof safe is a must!...

[user120312]

Originally Posted by madland

Hard liquor glass bottles will obviously store forever vs small plastic bottles. But what about packs of smokes. I don't smoke but I've thought about storing some for barter/trade..but not sure how to store them so they don't go to waste. TIA.

The reviewers of old rations, back when cigarettes were included, often sing praises of old tobacco, decades old, if/when properly stored. IDK about newer stuff.



I have an anecdote on cash. When the CA place was recently burgled last November, change bags I had in the kitchen desk were taken. However, quarters in the same desk that were in old film containers were not; probably more value there than in the bags. The thieves drank some juice from the fridge and rifled through it but totally missed the cash stored in the freezer.


Most of the cash stolen had been there for 20-30 years. What pissed me off? They stole the soldering iron next to the coin bag but left the power supply for it. Dumb *** thieves. Anyway, IMO health is wealth. I've still got a lot of graves to dance on.

[M60A1Rise]

Originally Posted by madland

Hard liquor glass bottles will obviously store forever vs small plastic bottles. But what about packs of smokes. I don't smoke but I've thought about storing some for barter/trade..but not sure how to store them so they don't go to waste. TIA.

Refrigerator or ammo cans in cool dry place with desiccant. Cigs and liquor are smart moves imho. I keep a bag or two of Bugler & rolling papers and a carton of smokes both Menthol and regular as a prep thing. You never know.

[twinfin]

Originally Posted by user120312

...I have an anecdote on cash. When the CA place was recently burgled last November, change bags I had in the kitchen desk were taken. However, quarters in the same desk that were in old film containers were not...

I'm nearly certain the thieves have no idea what a film canister is so had no idea how well they fit a stack of quarters.

Sorry your California placed got burgled. One more on the long list of reasons I got out.

[squeeze]

If it is a national emergency or even statewide: cash is almost worth only the paper it is printed on. A 22 and lots of ammo is a lot more valuable.

[4wdboss]

I keep enough to cover expenses for a good while. 1's, 5's, 10's, 20's and 100's. Never touch it and secured in a safe.
I keep adding to a stack of 20's every pay period for goofing off money.

[user120312]

Originally Posted by twinfin

I'm nearly certain the thieves have no idea what a film canister is so had no idea how well they fit a stack of quarters.

Sorry your California placed got burgled. One more on the long list of reasons I got out.

Thanks. Showing how long the cash had lurked, those film containers were coin laundry money when I was camping a lot 15-20 years ago. Probably 100 bucks at least in quarters. Generally, I rarely use cash or credit cards. Cash is mostly to transit states, paying for diesel, when I'm hauling stuff. Haven't touched it for months now.

Young active engaged people will have a far different scheme. I'd sooner walk to the beach, find some bait and catch a fish than go to town and buy fish or eat fish at a restaurant. Different strokes.