Quick Answer
Keep $200 to $500 in cash, which is enough for 3 to 7 days of basic expenses. This amount is manageable for emergency situations, yet not so large that it becomes impractical or a target for thieves.
Choosing the Right Amount
The amount of cash you should keep on hand depends on several factors, including your daily expenses, the local cost of living, and the likelihood of encountering cash-based transactions. A general rule of thumb is to keep 3 to 7 days’ worth of expenses. This translates to $200 to $500 for most people, assuming an average daily expenditure of $25 to $50.
Storing and Securing Cash
Once you’ve determined the right amount, store it in a secure location, such as a fireproof safe or a locked container. Consider dividing the cash into smaller denominations and distributing them across multiple locations to minimize the impact of theft or loss. This approach also makes it easier to access cash when needed.
Accessing Cash in Emergencies
When ATMs are unavailable, cash can become scarce. To supplement your emergency fund, consider carrying a small amount of cash, such as $20 to $50, on your person. This will help cover small expenses, like purchasing food or water, until you can access a working ATM or a more substantial cash source.
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