There are times when credit cards and debit cards will not be accepted. Living in the South losing power, due to hurricane or a strong storm is not unusual. What happens when you lose power, the ability to use a credit or debit card is lost. What should you do? Keep some cash on hand. There are times when cash is king. I hate to say how many times after a hurricane people are willing to cut down trees for less money if you have cash to offer. Keeping cash on hand enables you to continue making financial transactions without being encumbered by the loss of power.
The real question might be exactly how much cash you need. Did you know the average family keeps less than $300 dollars in their home including their piggy banks? How long would $300 dollars last you? If you do not have a food supply on hand and you need to purchase food during a power outage, you will need to spend some of that cash. You may want to consider keeping enough cash at home to pay bills for one month. If you need to pay rent, utilities, or anything else, it would give such peace of mind knowing you have enough money on hand to keep trouble away.
Of course you need to keep money at home in a safe place. Perhaps you have a sturdy safe, or you may want to create a special hiding place, examples might be an envelope tapped to the bottom of a cat litter box, or in a random pocket in a shirt or a coat in your closet, in a zip top bag in your flour. Be creative, storing money under your mattress is not the only place where you can store money. Be sure to put it in a safe place.
It may be hard to suddenly put together a month’s worth of expenses, so what can you do? You can save pocket change, each time you go to the atm be sure to grab an extra couple of dollars so you can start to build your cash at home. Dave Ramsey has a wonderful sense of by being prepared you keep trouble away. Why not eliminate the problem of not having cash at home in case of an emergency.