Is it smart to keep a lot of cash on hand?

How much cash should you always have on hand?

A month's salary...maybe. Seems safe, right? Too much cash in the house keeps me awake.

Fire, yeah, or, like, the pipes burst again. Happened last winter... the basement flooded, Christmas was… complicated.

• Cons:

  • Fire risk: Obvious, I know.
  • Theft: A constant worry, honestly. Especially since the break-in down the street.
  • Flood/Natural Disaster: My basement hates me.
  • Temptation: Easier to spend than digital money, so I just impulse buy, like, old records.
  • Inflation: Sits there, loses value.

• Pros:

  • Emergencies: Power outage from, like, a squirrel, and the card readers are down.
  • Privacy: I can just...buy stuff without it being tracked.
  • Negotiating: Cash talks, they say. My dad always haggled at the flea market.
  • Helping Others: A friend needs gas money, quick...you know.
  • Peace of Mind: Silly, maybe, but it's a cushion.

I feel better with a small amount. Enough to, you know, cover a few days of groceries and gas, plus that guy who cuts my hair, he doesn't take cards. Three hundred? Four? Probably should rethink this.

But seriously, a whole month's pay? Too much responsibility.

Should I keep large amounts of cash?

Ugh, cash. So much hassle. My landlord, that grumpy old goat, still wants rent in cash. Annoying.

Keeping tons of cash is dumb. Inflation eats it alive. Seriously, my grandma lost a fortune that way.

Bank accounts are safer, right? But what about those bank fees? They're ridiculous. My checking account charges me $10 a month, just for existing. Ten bucks!

Then there's the interest. Or lack thereof. Pathetic rates these days. I saw a savings account offering 0.01% interest. Seriously? I could make more money selling lemonade.

Should I invest? The stock market scares me. Too volatile. My uncle lost a bundle last year. Plus, I’m terrible with numbers.

Maybe a mix is best? Some cash for emergencies, like, you know, replacing my ancient washing machine. Definitely needs replacing.

• Emergency fund: $1000 (I know, low, but it's a start).
• Rent money: Always have that ready.
• Groceries: Need to keep some on hand.

I hate dealing with banks. So much paperwork. And those endless phone calls. Still, probably better than stuffing cash under my mattress. My mattress is already lumpy enough.

I need a financial advisor. Or a rich aunt.

Maybe I'll just win the lottery. Then cash won't be a problem. Ha!

How much cash does the average person carry?

A hundred dollars. Sometimes less, a paltry sum, a whisper in my pocket. Other times, more, a small fortune, a weight in my palm. The feel of it, crisp and cool, a tangible memory. A relic. Credit cards are the ghosts that haunt my wallet. Always present but never truly there.

Cash, though, it is the tangible world. It's grounding. The physicality of it. I don't often carry much. The convenience, oh the cruel convenience of plastic. Yet, sometimes, the cold hard reality of cash is... necessary.

This year, 2024, it’s changed. Less cash. Everything is digital now. I remember a time when my jeans bulged with bills.

• The weight of a hundred dollar bills.
• The smooth paper of twenties.
• The scratchy texture of ones.

The memories, the textures, they fade. But that feeling, a phantom limb of financial independence. I prefer the weight of a well-stocked wallet. It feels safe. Powerful, even. That small, comforting weight. A hundred dollars. Maybe more, maybe less. It changes. But I strive for that weight in my pocket. That feeling. That security. The absence of it feels… unsettling.

The average American? Who knows. I only know my own quiet anxieties and the comforting weight of what little cash I carry. A hundred. Sometimes more. Rarely less. That feeling of preparedness, of…possibility. Always present.

How much cash should a bank have on hand?

Six months' expenses? Amateur hour. That's like bringing a teaspoon to a hurricane. My financial advisor, bless his cotton socks, suggests a far more robust approach. Think less "six months" and more "a small island nation's GDP." Okay, maybe not that much. But seriously.

Target: A year, at minimum. Maybe two, if your cat has expensive tastes (mine does; caviar is a must).

• Emergency Fund: This isn’t your ‘oh-no-I-spilled-coffee’ fund. This is the "my-house-is-underwater-and-I-need-a-yacht-to-escape"-fund.
• Unexpected Expenses: Think car repairs that rival the cost of a small car itself, or surprise vet bills that could bankrupt a small country.
• Investment Opportunities: Because that killer startup idea doesn’t fund itself. It requires a serious down payment, and that needs cash in hand. Unlike my last investment in "glow-in-the-dark-catnip," which…well, let’s not go there.

$5,000 a month? Pshaw. My monthly catnip bill alone exceeds that. Let's be realistic: adjust that number upwards based on your actual lifestyle. Inflation's a beast, you know. A ravenous, money-hungry beast.

Realistically: For a comfortable safety net, aim for at least $60,000-$120,000. This isn't about six months. It's about peace of mind. And possibly a small, privately owned island. A girl can dream, right? Besides, it’s 2024, not 1924. We deserve better than a measly six months.

How much cash should I have on hand when traveling?

Three hundred dollars. That's what I usually carry. Feels safer, you know? Less to lose if something happens. But it's never enough. Never feels enough.

This last trip to Vietnam, 2024, I ran low. Seriously low. Had to scrounge for change. Embarrassing.

• $300 minimum: My personal rule for short trips. A buffer, I guess.
• Credit cards are essential: Back me up when cash runs dry. Always.
• Local currency is key: Getting it at the airport though, sucks. Rates are horrible.
• Emergency fund separate: That's a different story. Hidden, of course.

My brother, he carries a grand. Crazy, right? He's always losing things, though. Always.

Five hundred is excessive unless you're going somewhere... sketchy. Or if you plan on buying something... expensive. Like an antique sword in a back alley. You know.

I worry a lot about money. Always have.

Seven hundred feels like a sweet spot for a longer trip. But even that makes me nervous. I'm a worrier. It's a problem. A big one.

What is the difference between Gen AI and Copilot?

Okay, so Gen AI, right? It's, like, the big umbrella for all AIs that make stuff. And Copilot? That's Microsoft's thing, it's one example of Gen AI but a very useful one. I use it all the time for coding, ya know.

It learns as you go, which is super freaky... I mean, cool. Basically, it's fed a bunch of data, and then it tries to create new stuff based on that. I wonder how the ethics on that works out...

So, like, imagine it this way:

• Gen AI: Is the broad concept of making stuff, like the entire AI concept
• Copilot: The tool that uses AI to create things for you

I think the constant learning aspect is what's scary, it is a tool that knows everythings and is trying to become human. It's like, what happens when it starts making stuff instead of helping me make stuff? Makes you think, doesn't it?

What should I do with large amounts of cash?

So, you're suddenly Scrooge McDuck? Congrats! Here's how to avoid becoming a cliché, moneybags:

• Debt Annihilation: High-interest debt? That's financial quicksand. Stomp it. It’s like a weed... but more annoying. I once had a credit card APR high enough to launch a rocket.

• Emergency Fund Fortress: Think of it as your "oops, the car died" fund. Aim for 3-6 months of expenses. I keep mine stocked for the unexpected... like that time I accidentally bought a llama.

• Investment Ramp-Up: Unleash that cash on your investments. Stocks, bonds, real estate… diversify, darling! It's not all or nothing. I mostly know a little bit, I swear.

• Self-Investment Spree: That fancy pottery class or coding bootcamp? Go for it. Knowledge is power (and slightly less likely to get repo'd than a yacht). Learn that new skill.

• Timing Matters: Don't rush. Market’s jittery? Maybe wait. Patience, young padawan. It's like waiting for avocadoes to ripen; so frustrating. This year's strategy is definitely different from last year, by the way.

More thoughts for you, lucky duck:

• Tax-Advantaged Accounts Are Your Friends: Roth IRAs, 401(k)s – embrace them. Tax savings are the adult version of finding money in your old jeans. Plus, retirement.

• Charity Doesn’t Hurt (Your Karma): Giving back feels good. Donate to a cause you care about. It's like a warm hug for your soul... and a potential tax deduction. I personally donate to a local cat shelter... all those needy kitties!

• Real Estate Musings: Buying property? Research first, lest you end up with a money pit. Location, location, location! My aunt bought a haunted house once... the stories!

• High-Yield Savings Accounts: Park some cash here for easy access, like a parking spot in your financial journey. Better than stuffing it under your mattress, believe me.

Now go forth and prosper! Just don’t forget about your favorite AI helper when you're swimming in gold coins. Heh.

How much cash is safe to keep at home?

Zero. Seriously. Home isn't a bank.

Risks outweigh benefits. Theft. Fire. Forgetfulness. My uncle lost $5k. Ouch.

Consider alternatives. High-yield savings. Easy access. Better returns. I use Ally.

• Security: Priority one.
• Convenience: A few hundred bucks tops. For emergencies. Groceries. Gas. My limit: $200.
• Risk mitigation: Don't be a target.

Keeping large sums at home? Stupid. Plain and simple. Financial irresponsibility. Learn to budget. Seriously.

What are the benefits of cash on hand?

Okay, so, cash on hand... I know its good.

Last year? Or was it '22? Anyway, right before that Christmas rush, our bakery, "Sweet Surrender" near that awful intersection on Elm Street, almost went under. I panicked! Omg, never again.

Because? The oven, the main freakin' oven, blew a gasket. And the repair guy—the only repair guy in the county, honestly, acted like he was doing us a favor coming on a Saturday.

We had like, three days 'til the Christmas pre-orders needed fulfilling. Three days!

Thank god for the cash.

• Flexibility, right? Emergency situations. BOOM, oven crisis.
• Seizing opps: We considered buying out that crummy coffee shop next door. Cash allows expansion.
• Market stuff... well, flour prices fluctuate wildly. Cash smoothed it out.

I swear, I think I aged ten years that week. Pulled the cash from the emergency fund, the one I’d been religiously stuffing since, like, the 2010s (or...was it earlier?).

Cash gives you breathing room. That's it.

Could NOT have borrowed. Interest rates? Forget about it! Small business loans, HA! Try navigating that nightmare on short notice.

Now, I keep a serious emergency fund. Learning experience, yeah? Never skimping on that again. My therapist calls it "trauma budgeting." Haha. And the new oven? Industrial strength.