Digital money may be mainstream, but good old cash is still essential. It’s the easiest way to buy from most stores, some of which only accept cash.
It’s also easy to steal. Which leads to the question: How much cash should you carry?
How Much Cash Should You Carry?
No more than $200 in twenties. That’s the most you need for:
Now, $50 is what you can really expect to spend, depending on your habits. The reason we say $200 is to cover everything in case your card stops working. So aside from the habitual $50, the rest should be only for emergencies.
If you spend a lot of cash every month, you’ll probably need a lot more.
It’s not a good idea to carry hundreds of dollars in your wallet. But at the same time, you don’t want to be going to your ATM twice a week. Let’s not even get into the ATM scams out there.
Keep Your Cash at Home
You can talk with the bank employee and ask to withdraw all the money you can. You then keep it at home in some sort of safe box. So whenever you need cash for your wallet, you just get it out of the box.
For emergency purposes, you will need up to $1000 any rarely beyond that. But no matter how secure, there’s still one thief you need to protect from: inflation.
Don’t make this box your second savings account. Everything else should be in your bank account or investment so that your money can— at least— maintain its value.
By the way, it wouldn’t be a bad idea to invest in your home security if you want to do this.
Protect Your Wallet
Maybe you live in an area where pickpocketing is common. And to stay protected, try these four tricks:
This sounds so easy you may wonder: “Why haven’t I thought of this before?”
All you need to do is get another cheap wallet and place it somewhere where it’s easy to see.
Now, this trick doesn’t always work. If you put it in a visible place, thieves will be more likely to pickpocket you. But if they do, they’ll probably run away after they get the fake wallet.
What if I told you pickpocket signs are the biggest traps? The moment you see it, you worry and start checking for your belongings. This shows the thieves around where you keep your valuables.
So avoid checking for them in public, especially near one of those signs.
But these aren’t even the most dangerous places. If you travel to another country, you’ll probably need an extra hundred or two. And that’s what most travelers do, so be more aware in airports, subway stations, and shopping malls.
Cash will never be as secure as digital money, but there’s still a lot to be improved. Here are some innovations:
If you don’t carry a lot of cash, there’s no point in investing $100 in wallet protection. A fake $5 wallet should do the trick. But if you carry lots of cards, password-protected makes sense.
Why are you carrying dozens of cards anyway? Seriously, some people carry more cards than dollar bills, which makes it even riskier. If you carry checks, that’s just as bad.
Here’s a simple rule: do NOT carry anything you don’t need in your wallet. If you lose it, that’s it. And anything you keep can help a thief steal your information (receipts for example).
The Bottom Line
We’re not talking of a lot of money, so there’s no reason to walk on the street worrying about thieves.
Remember to use it for emergencies only. Use a debit card when possible, especially if it gives cashback. And if you lose your wallet, well, you won’t have lost anything important.