How Much Emergency Cash Should You Keep at Home? | WSJ Your Money Briefing

Financial advisors recommend keeping physical cash at home in the event of an emergency or natural disaster.

Wall Street Journal personal finance bureau chief Jeremy Olshan joins host J.R. Whalen to discuss how much cash should be put aside.

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[BigHunny]

We were without power for 13 days during the 2009 Ice Storm. Thankfully, we had $2, 000 in cash stashed at home. It was lifesaving!

[SouthoftheBigChicken]

It is important to keep change and small bills, 1's, 5's, 10's, 20's, 50's, and 100's. If grid goes down, there will be no change, keeping all large bills will not work. There is a story of a woman after Katrina, she spent $20.00 for $5.00 worth of items because of no change. Hope this helps.

[joshs]

For the love of God, as a lifelong Florida resident don’t ever pay any contractor in cash during a storm. That’s the fastest way to say goodbye to your money and they skip town and you’ll never see them again. Tons of guys did this back in 2004 and 2005 ripping people off left right and center.

[thewisdomdivatv]

A few years ago I stopped spending $5 bills & stash them in the house. I got my husband to do the same and we have a few thousand dollars now so we got a safe.

[demimorest]

Someone hit a power pole in Georgia a few weeks ago. ALL of the businesses in that area only accepted cash as their electricity was out. Starving, I was glad I had cash on me. Always keep some on me. Since the food wouldn’t last long without electricity, they doubled my order for the price of one serving. Big win for me.

[theprayingman]

I am a minimalist, but I also believe in some areas i rather have it and not need it then to need it and not have it. So I have two stashes of emergency money in cash. The first is $500 in mixed bills for small emergencies, and the second is $5, 000 in mixed bills in my safe for major emergency expenses.

[geniferteal]

When Sandy hit I was lucky to find a deli that was open because most didn't have power.
They still didn't have internet connections so they were only accepting cash.
This is the kind of situation you need cash for in an emergency.

[GenK]

Its crazy to think that this newer generation sees the use of cash as archaic 😮

[hisaddle]

I stopped by a McDonalds a few Saturdays ago, their system was down, all they could do was write down orders and take cash. I was fine, always have some cash with me.

[henryalmodovar]

I was in Puerto Rico during hurricane Maria, when the whole island went dark. My family spent close to $400 for around 2 weeks in groceries, gas, etc. So I'd say for extreme situations, $500 should cover the basics for a while.

[ucfxrup]

People may laugh . But this is a real need. If SHTF. Having some cash in the house will be needed. At least in the short term.Good and important video.

[washguy]

It needs to be in small denominations, if they can’t make change you loose the difference.

[myvenusheeler]

I was out of power for sixteen days after Hurricane Ike and at least for the first few days it was a PIA to find stores or gas stations open. After that I started keeping a thousand dollars in cash at home. Thankfully I had plenty of non-perishable food on hand, so eating was not problematic.

[clintpatty]

My credit union uses backup generators at every ATM, but I suspect that money would quickly run out if there was a sustained power outage.

[Dollsteak]

2k could cover everything for at least a couple weeks plus mis sized unexpected expenses. I've always been a envelope stuffer that pays my bills 6 months out so the 2k is there without really trying.

[brennelement]

1 month’s expenses is a solid recommendation

[MichaelChengSanJose]

$5-10K in petty cash seems about right to keep around. Just enough to do something in a pinch but not lose too much interest by not being in a savings account.

[alphaj]

I think $1k seems like a decent amount to keep hidden somewhere in the home.

[muffineyes]

Senator Menendez recommends at least $500, 000 cash on hand

[poorwotan]

This story is about actual CASH not other prepping one may do. I live in hurricane alley so my prep is pretty extensive (from canned/dried foods, water, batteries, portable solar panels, hammocks, tarps, fans, snacks, etc); I calculate about 2 months of living without governmental help. But CASH is only for small stuff at the beginning and 500-1, 000 is more than enough.