Busted: Bankers and The Global Economy

January 9, 2008

Keeping Cash On Hand

Filed under: banking, money — Tags: , , , , , , , , — digitaleconomy @ 1:00 am

moneystash.jpgKeeping cash on hand for at least three days worth of living expenses is a good idea. I am not claiming that this solves all problems, but rather gives you a wider latitude to survive when the world around you doesn’t operate perfectly. Where do you keep a cash stash? I would find a better place than a kitchen drawer. What is wrong with a private stash of cash? Nothing.

Security quickly becomes a concern of some. What if my house is robbed? If you are careful, a burglar will never find your cash stash. Depending on where you are, you may be as likely to be robbed at an ATM machine, especially if you spend lots of time there.

What would you do if the ATM machines suddenly stopped working or the electronic cards were to stop functioning for any reason? You would be able to use your cash instead of running out of gas or going without entirely. That is the prospect that everyone faces if your favorite electronic card doesn’t work for any reason. Whatever the case, keeping all your money in the bank accessible through the use of an electronic card for safety is only seductive reasoning, not reality. What is safety when you give that safety into someone else’s keeping that doesn’t have your interests at heart? That seductive reasoning quickly becomes foolishness.

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