Lately 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?