Most people rarely have cash on them, let alone at home. However, there are always unforeseen events that necessitate having some cash on hand.
Cash lets you buy gas, food, and medicine if your digital currency or banking systems are down. So, how much cash should you keep?
You should always have at least $100-$200 on hand, which is enough to cover a few gas fill-ups, a delivery tip, and emergency expenses.
Limit cash to 10% of your emergency fund or $10,000. The IRS will flag cash deposits over $10,000 per year.
In a national emergency, having $1,000 in cash at home would allow you to cover immediate expenses.
Depending on the individual, a sum less than $1000 is almost always preferred. There are insufficient justifications for keeping large amounts of liquid cash at home.
You'll want to keep your cash safe, no matter how much you have at home. To begin, you'll need to find safe havens for it.
Ensure the safe is fireproof and watertight to prevent loss. If you don't want to deal with expired bills, make regular deposits and replace the cash.