The Importance of Keeping a Cash Stash

In this modern, technology driven world around us, with credit cards, debit cards, money transfers, pay pal, smart phones, etc., it would be wise to remember to have some cash set aside for…

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 Cash for Emergencies

It seems like every time you turn around there is either a hurricane, tornado, earthquake, flood, heat wave, drout, and I have not even gotten to winter yet. Everyone of these has the potential to knock power out for days. As I write this, it’s been a week or so since Hurricane Irene hit the East Coast of the U.S., and the last I heard, there was still over a million people without power.

Without power, cash registers won’t work, gas pumps won’t work, ATM’s won’t work, banks may not open, and your risk is that you may not have access to your money when you really need it. Not to mention I.D. theft is out there, as well as another terrorist attack. Cyber warfare is alive and well around the world, and messing up our internet, stock market, and banking system would make a lot of people very happy. The amount of viruses that our government uncovers every year is in the many thousands. I’m just saying we all need to make sure we have some cash we can access to get through an emergency.

Cash for Opportunities

It’s not all bad…opportunities can present themselves at any time too. We can plan for an opportunity, just like an emergency, can’t we? A great deal on travel, art,  equipment,  electronics…you never know what might present itself to you, and if you have some cash, you might be able to get a great deal. Not mention that cash has bargaining power. I personally hate haggling with people about money. But sometimes you just have too. If you have cash, it speaks a lot louder than a check or a card.

I scored an almost new, really nice TV once. I guy was moving to Alaska, and he needed the money. I didn’t need the TV, but I told him that I could only pay a certain amount, and when no one else came through,  I was the proud owner of a really nice TV that I really didn’t need, but it was dirt cheap and did come in handy later. A friend of mine just bought a Jaguar sedan for $2000, because someone he knew was going to trade it in at a dealership, and that’s all they would give for the car. He had the cash, and now he can either keep the car, or sell it for probably 2 to 3 times the $2000.  I’ve seen the car, it’s nice. Just a couple of examples, but the important thing is having some cash set aside gives you an option you might not otherwise have.

Just in case you were thinking about that big sale that happens every week at your favorite store, I really wasn’t talking about that! 

Where do I keep my Cash?

First of all, you don’t tell anybody where you keep your cash, unless it’s your spouse or significant other, and that is debatable for some. Some options would be a safe, the freezer, one of those security boxes, safe deposit box at a bank or credit union, or that secret place only you know about. Fire and theft protection would be highly recommended…

How Much Cash Should I Stash?

Everybody’s different, so what ever feels right, and whatever you can afford. If it’s five dollars a week, so be it. If $5000 is chump change to you, sweet. Your needs and situation is different from you neighbors. But give it a little thought, especially for the emergency part.

Any other Reasons to Stash some Cash?

 Well, it does feel kind of good to have some cash tucked away. There have been a time or two in the past where money has been very tight for me, and it sucks. Helping your kids or relatives with a little cash here and there is a nice feeling. When you can help someone who is in need and who really deserves it, that feels good! I suppose also that if you were in a bad situation with a spouse, or partner, you may want to have some cash set aside. Divorce, drug use by someone you love, or lack of trust is something we would rather not talk about, but it is a realty for a lot of people, and protecting yourself with some extra cash is not a crime.

Just a friendly reminder…Cash for Emergencies and Opportunities…hopefully you won’t have a real bad emergency, and a lot of opportunities will come your way. Either way, be as prepared as you can with some extra cash. How long will it take your money to double in value? Find out here. 

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