How much cash do you have on hand or in your home right now? Is it enough for gasoline, a bus ticket, a hotel room, or even a meal for you and your family? In making your emergency kit, don’t forget about emergency cash.
Many people don’t realize just how short-term minded we have become, especially when it comes to our finances. In the event of a wide-spread power outage, think about how quickly it would become difficult to retrieve your own money. If the power goes out, stores won’t be able to run their credit/debit card machines, you won’t be able to access your online banking information, and no ATMs will be running. Those who rely completely on using plastic cards for purchases will be in serious trouble. In some cases merchants may stop accepting those cards if they feel uncertain about when they could actually get their money from the banks.
The best emergency plan will include a diversified mix of gold, silver, US dollars/coins, and bartering items
CASH
Having cash on hand can be crucial for obtaining items you need, fueling your car for travel in case of an evacuation, overnight stays if the emergency affects several states, or meeting other needs that will surely arise during a crisis.
How much cash do you need? Where should you store your emergency funds? What could you use instead of money?
HOW MUCH IS ENOUGH?
How much cash you keep on hand will depend on several factors, such as how far you have to travel to your evacuation spot, how many people you’ll be financially responsible for, and how well-stocked your supplies are. Think about your emergency plan, and consider possible scenarios where you would have to spend money, e.g., There is major flooding so you can’t stay at home. You have time to evacuate by car, but have no relatives in the area. All your friends have to evacuate, too. Would you have enough money to pay for fuel, food & water, a hotel—if there’s one with available rooms?, etc… Remember that the laws of supply and demand still exist and are greatly magnified in crisis situations. The cost of everything will increase rapidly.
HOW MUCH CASH TO CARRY?
Bare minimum is to keep $20.00 in small bills and coins available to make purchases for a short-term emergency. A more prudent plan is $100.00-$200.00 stashed away
Always carry small bills (Twenties and smaller) and coins in case change is not available. Who wants to pay $50.00 for a bottle of water? Be smart about how and where you carry it – maybe not all in one place, if possible.
HOW MUCH CASH AT HOME?
Minimum of $200.00 and the maximum will depend up on the type of emergency for which you are preparing. A home safe (fire retardant) is your best alternative for protecting your home cash storage.
WHAT ABOUT USING A SAFE DEPOSIT BOX?
A safe deposit box is good for many items but not all, and certainly not your cash or cash alternatives!
What you could/should store in a safe deposit box:
-Copy of your will
-Copy of insurance policies
-Titles to your house and cars
-Detailed list of bank and brokerage accounts, CDs and credit cards
-Marriage license / Divorce decree
-Expensive, rarely-worn jewelry
-Birth certificates
-Family heirlooms
-Stock and bond certificates
For additional protection: Place these documents inside Ziploc bags (anti-flood), and ask your homeowner insurance agent about a ‘personal-articles floater’ to your policy. (NOTE: In a fire situation any plastic covering may melt – the interior of the boxes will be very hot). For items stored at home this fire retardant bag may be your best choice: U.S.Patrol JB5076 Fire Resistant Document Bag. Beware of bags advertised as fire resistant that are made out of asbestos. They may be less expensive but who wants to wear gloves every time you handle your emergency cash or documents?
WARNING: Your bank does not provide any insurance coverage for the contents of your safe deposit box. You can ask your bank if they offer that type of coverage for a fee or check with your homeowner’s policy carrier for rider coverage of items stored off of your premises.
What Not to Put In Your Safe Deposit Box:
Do not put original wills, trust instruments, or powers of attorney in a safe deposit box. Instead, keep these in a fireproof safe at home or at your attorney’s office.
9 Things You'll Regret Keeping in a Safe Deposit Box
Why? When someone dies, a safe deposit box may be sealed for weeks, which could result in delays. You might even have to spend money securing a court order to open the box. Furthermore, here’s the Catch-22: the will’s executor will not be able to get to the box without the will that shows that he is indeed, the executor, resulting in headaches and delays.
This short article provides a good overview of safe deposit boxes with quite a few more details: http://www.foreignborn.com/self-help/banking/10-sd_boxes.htm
CASH ALTERNATIVES:
Anything of value to someone else can be used to “purchase” items that you might need during an emergency situation.
Jewelry
Precious Metals (gold, silver, etc…)
Items for barter:
-Ammo
-Food
-Water
-Any life sustaining supplies
-Bic lighters, flints
-Batteries
-Toilet Paper!
-Cigarettes
-Alcohol
-Candles
-Soap
-AND MANY, MANY MORE
Skills to barter (this is just a sampling – there are many, many skills that others would find of high value, especially in an emergency)
-Medical / Dental (for people or animals)
-Locksmithing
-Construction
-Mechanical / Automotive repair
-Hunting
-Sewing
-HAM radio expert
-AND MANY, MANY MORE
The article links below will provide information from a wide range of perspectives but each one has something to share which can better prepare you for “purchasing” the items or services you may need in an emergency without traditional money.
Barter Items:
https://uspreppers.com/the-top-50-items-to-barter-with-in-case-of-disaster/
https://www.superprepper.com/shtf-bartering-items-to-stockpile/
https://secretsofsurvival.com/top-commodities-to-barter-with-post-collapse/
Barter Items & Skills:
https://www.survival-spot.com/survival-blog/post-collapse-barter-items-and-trade-skills/
Describes a diversified emergency fund:
http://survivalcache.com/a-real-emergency-survival-fund/
7 Reasons to have Money in your Bug Out Bag
TOP 100 THINGS THAT DISAPPEAR FIRST
Teach yourself how to be a locksmith: https://www.youtube.com/watch?v=mBcLtDHFfO4
WHY SHOULD YOU WORK HARD TO SAVE AND STRETCH YOUR DOLLARS?
http://www.therichlife.com.au/2018/05/24/bother-trying-save-buck/
MONEY MAKEOVER CHALLENGE
http://www.therichlife.com.au/2018/01/31/money-makeover-challenge-lets-begin/