Is It Smart To Keep Lots Of Cash At Home?

 

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Do you keep an emergency stash of cash in your house somewhere? 

It’s a pretty common thing for people to do, but the question is…is it smart? 

Is it wise to keep actual cash in your home and wouldn’t it be safer to store it elsewhere, like a bank for instance? 

There are so many questions surrounding this topic that it can’t be ignored any further. Moreover, in the troubling financial times, we find ourselves in, more and more people are wondering whether or not an emergency stash of cash is a good move to make. Today, we’ll discuss why this could be a good idea and why it also may be bad. 

Yes, it’s smart to keep emergency cash at home

The argument in favor of keeping some cash at home is that it comes in handy when you need money, fast. You don’t have time to make a bank transfer or you’re required to pay in cash - which can happen when dealing with some contractors or repairs people. 

Furthermore, it’s a bit of a buffer in case something happens with the banks. Who knows, the banking system could collapse or your bank may get hacked and leave you without access to your accounts. You need money to live until access returns, which is why cash is so useful. It’s also useful if your cards get stolen or someone commits identity theft on you. While you wait for new cards and bank details to arrive, the emergency cash tides you over. 

So yes, it is smart - but only if used as a last resort. Plus, you should only keep a few thousand dollars in cash at the most. The bulk of your savings will be better off in savings accounts. 

No, it’s not smart to keep emergency cash at home

Why do some people argue against an emergency stash of cash? 

Primarily, there are safety concerns. What if your house gets broken into? All of a sudden, you’re down a few thousand dollars. This is true, but it can be countered if you securely store your cash. You could buy a safe online and install it in your home so it can’t be removed. If you get burgled, your money remains secure. 

The other argument is that cash doesn’t grow in value. It isn’t gaining interest, which means you miss out on extra money. If you put the cash in a bank account, it will go up in value even if you don’t add more money to the account. 

After looking at both arguments, it’s safe to say that you don’t need to store cash at home. It’s perfectly safe in a bank account where it can generate interest over time. With that being said, there’s nothing wrong with having a small supply of cash if you want to. Ensure that the majority of your savings are in savings accounts as this will solidify your financial future. Only keep a small portion at home in cash if you feel the need - and make sure it’s stored securely where nobody else can access it.