How Much Cash on Hand Do I Really Need To Have?

Cash is king.

This is an old adage that remains true, but how does this work in practice? Right now, 42% of people carry no more than $40 in cash at any given time.

There are plenty of reasons to keep cash on you, but it’s important that you understand how much you should keep and how you should use it. These tips will explain what you need to know about how much cash on hand you need to monitor your finances and maintain your quality of life.

Have Enough for Expenses and Some Extra

First and foremost, you need to make sure that you have enough cash on hand to handle your expenses. Consider your expenses for the day, including unforeseen circumstances. You might need to fill up your gas tank or purchase a public transportation pass. There might be an impromptu lunch or dinner invite, or your kids or spouse might need to grab some quick cash from you.

In general, keeping $200 or $300 on you is a good bet for most people. People have adopted the mindset to not carry cash, or to carry as little cash on them as possible for security or safety reasons. Make sure your life is set up so that you can lose a few hundred dollars and still be fine if the worst case scenarios happen. Keep small bills when you can so that you don’t worry about whether the business or person you’re dealing with has change.

Consider Your Bank Account Balances

Keeping cash handy involves more than holding physical currency. Make sure that your checking accounts are healthy so that you can always swipe your card and take care of your needs.

Consider medium-sized to significant expenses like a surprise vehicle repair or having to replace something that breaks. Do business with a bank that is user-friendly and that has plenty of perks and security measures in place. Find out the daily maximums for your debit card so that you can use the money that you need freely.

Know How You Can Quickly Grab Cash

Do everything that you can to be able to get cash whenever you need it. Look into your bank’s ATM withdrawal rules and find ATMs that are either surcharge free or with low and reasonable rates. Some banks today even reimburse accountholders for external ATM fees.

In this day and age, you should also consider how Bitcoin and other digital payment methods that come into play. Secure all of your Bitcoin accounts and make sure that you know your pins and passcodes so that you can turn your crypto into paper currency whenever you need to.

You can also go here for more information when you’re learning about Bitcoin ATMs.

Secure the Cash on Hand That You Need

Having enough cash on hand can help you out with so many areas of life. Let the points in this article serve as a rule of thumb to consider when you want to get your money under control.

Begin with these tips and find the help of an accountant that can advise you. In the meantime, check out our other articles to learn more about personal finance and investing.

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