How much cash should one keep at home?

Right or wrong, I'm extremely bearish on the economy in the near term. I expect many serious challenges, which, even if dealt with in an expedient way, will present hiccups for everyone in day to day living.

To that end, I've gone granny with my money. I've closed out all my banking accounts except those with institutions I am comfortable with (PenFed + Alliant credit union). I have a Bank of America free checking account but that's just for the convenience of making deposits to transfer into my other accounts.

Given the precarious state of our banking system, how much cash should I be keeping at home in case, say, one or multiple banks fail shortly and the ATM + debit credit networks they operate are shut down (even if only temporarily)?

I'm trying to find the balance between paranoia and practicality. So far, my instinct is I should have enough cash, mainly in smaller denominations, to pay for one week's worth of expenses (gas, food, monthly utility bills, heating/cooling supplies, money to purchase emergency supplies like wood for the fireplace/flashlights/batteries/candles/etc).

Just wondering what others think and if they are making preparations by keeping cash at home as well.

Or, is having cash the wrong approach? Should I be stocking up on supplies instead?

I keep $500 under my tin foil hat.

My house has an attached money bin where I keep all my gold coins in. It also doubles as a great swimming pool when I decide to swim in my coins.

this topic comes up from time to time --- it is a normal male instinct to make sure you are prepared to protect your fort

if it makes you feel better --- I say there is nothing wrong with having well-trained guard dogs, guns and ammunition, and a 60 day supply of food and water

I am having trouble figuring out how to keep a beer supply untouched from use --- I am contemplating buy some really foul tasting beer and putting it in storage --- any suggestions?

You're talking about the collapse of modern society for a little bit. I know most fatwalleters don't have much faith in government here, but they will make sure as far as they can to protect against a wholesale collapse of the payment industry.

You are only going to have 2 extremes. Total collapse of society, or business as usual. You should stockpile real supplies and not cash. How many places are going to gouge you if the shit hits the fan?

Don't stockpile cash.

If you're really worried, never let your car gas tank get below 1/2 full of beer. Make sure you have a supply of non-perishable beer. Beer, generator (for your kegerator), beer to run the generator, alternative cooling supplies (to make sure the beer stays cool, or make sure you have some english ale that can be enjoyed warm.

Common sense says come the collapse of civilization it would be better to already have the "emergency supplies like wood for the fireplace/flashlights/batteries/candles/etc" rather than to trot out among the zombies hordes to find a store with supplies and still interested in cash.

There is money in the banana stand....

Edit: I don't have much cash on hand. However, I got quite a few battle rifles and crates of ammo.

Prepare for the collapse of the financial system the way you prepare for a zombie attack: With food, water, guns, ammo, and a few snappy catch phrases.

tripleB said: I think it's reasonable to have 1 to 2 months worth of living expenses in cash in case something like Katrina happens and you need to live in a hotel in a nearby state for a few weeks.

How exactly would having the *cash* help? In a "Katrina" situation (where the disaster is confined to a certain area), I would suppose that you would continue to be able to use your debit/credit cards and bank accounts, especially if you hold an account with a mega-corporate bank. And in that case, I suppose you might even be putting yourself at risk by holding the cash on hand...what if the cash were to be destroyed by some sort of other disaster?

Or (as has been mentioned) if there were an even worse situation that sent the banking system/economy/civilization into chaos, then your cash would probably not be very useful.

scottxmso said:
How exactly would having the *cash* help? In a "Katrina" situation (where the disaster is confined to a certain area), I would suppose that you would continue to be able to use your debit/credit cards and bank accounts, especially if you hold an account with a mega-corporate bank.

You could use the cash to buy supplies to get out of the Katrina territory or bribe people. I said 1 to 2 months living expenses. That's a few thousand dollars only. Cash is good leverage at the beginning of disasters.

Keep gold and jewelry on hand for really dire situations. These can be used to procure escorts for soldiers from the occupying Military forces in exchange for favors to you.

You need food, water and guns - not cash. What good are little green pieces of paper if society collapses (which is the scenario the OP is suggesting)?

Good timing for this topic, as just yesterday, a fiber optic line was cutting going into our city.
That one line caused everyone in the city to lose phone service (landline and cell phone), and 3/4 of the business couldn't process CC transactions. Some of the banks even closed yesterday, because they could not do anything!
All the big busines (Wal-Mart, K-Mart, Lowes, etc) couldn't do CC transactions, as they either have T1's or some other type of internet provided by the phone company. Only business which received their internet from the cable company could do CC transactions.
Now this only lasted a day, but what if you didn't have cash? Some business won't even take a check if they can't process the check through telecheck, or some other processing company.
It's always a good idea to have SOME cash. I try to keep at least $100 in my safe at all times. It's not very much, but would be enough that I could easily survive a couple days without the help of a bank.

I keep enough for the pizza boy and (ummmm.... how should I say this...) other late night activities.

I remember reading here a while ago about someone having "balanced" portfolio:

They keep half their money stuffed in their mattress. The other half is buried in a bottle in their backyard.

I think a billion dollars cash on hand would take care of things nicely.

Personally, I usually keep only $40-$80 cash on hand, plus what might be in my wallet (normally less than $50).

Banks do not freeze people's accounts for no reason; there's always a reason.

Believe Warren Zevon, man. "Lawyers, guns and money" - minus the lawyers, of course. Replace them with bullets.

Actually, minus the money also.

Mr. Beer Kit will be quite helpful

Why I keep hearing the idea of having six months worth of cash or something easily convertible around as the minimal?

hkgfnt said: Why I keep hearing the idea of having six months worth of cash or something easily convertible around as the minimal?

Turn the channel and get away from Suze Orman.

Tony Soprano stored cash in his duck food container. Just make sure your trash-blonde wife doesn't find it.