Cash Emergency Fund?

Posted by Mrs Money on October 23rd, 2008

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cash.jpgLately I’ve been thinking about having a small cash emergency fund.  When Hurricane Ike came to town, I was completely unprepared, and many gas stations, grocery stores, and pretty much everything else was shut down.  Without electricity, it was hard to operate.  For those businesses that could open, many of their computer systems were down, which would make it really hard to use a debit card or credit card.  I’m the kind of person that hates carrying cash and I never have any on me.  I’ve had to use my debit card for less than a dollar.  I guess my generation is the “plastic generation” and we just don’t deal much with paper cash.

I am thinking about keeping a small amount of cash in my safe in case of an emergency.   I’m not talking about taking all my money in my emergency fund and socking it under my mattress, I’m talking maybe a couple hundred dollars that would tide us over for a few days to buy necessities if something terrible happened and the bank couldn’t open.

I know many people are taking money out of banks now, and I wonder what their reasoning is.  Are they freaking out, or are they just being safe?  I guess I’m going to go somewhere in the middle and “be prepared”.  I guess it can’t hurt.  The only thing I’ll lose is some interest from not having it in a brick and mortar bank.

What do you think about a cash emergency fund?  Do you keep money in your house?

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9 Responses to “Cash Emergency Fund?”


  1. Kacie says:

    I think it’s an excellent idea. Maybe keep small bills and include a roll of quarters or two.

    Interest lost on $100 or $200 is going to be fairly minimal anyway.

    [Reply]

  2. Mrs Money says:

    Thanks! I’m definitely going to do that. I’m not worried about the interest. :)

    [Reply]

  3. We usually keep some cash in the house. I don’t think it qualifies as an “emergency fund” but it’s nice to have cash to run a few errands, rather than using a bank card. We also always have tons of change around the house.

    [Reply]

  4. Mrs Money says:

    Donna- thanks for stopping by!

    I hate using my bank card for small amounts, but sometimes I just don’t have cash on me. I need to be better about that.

    [Reply]

  5. sara l says:

    My mom used to keep a few $20s scattered around her room, usually under ugly lace doilys. I keep meaning to implement this practice but we’ve been really bad at replacing money when it’s used for an ‘emergency’

    [Reply]

  6. Mrs Money says:

    Sara, my mom does that too. I think it’s so weird. :) I’m keeping mine in envelopes. Thanks for your comment and for stopping by!

    [Reply]

  7. Andrea says:

    A cash emergency fund in the house is a great idea!I keep a few hundred in a tin can in the. If I kept it in my wallet, I would find a way to spend it. So far, I have not needed it. I feel it is necessary for all the “little” emergencies that creep up.

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  8. Mrs Money says:

    Andrea- a tin can is a good idea. I have an envelope I’m sticking mine in right now.

    [Reply]


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