The way we use and hold money is not what it used to be. Unlike the past Most people rarely carry cash with them, let alone home.. In emergency situations such as an emergency (weather, power outage, accident or illness), it is important to have some cash on hand.
The question that swirls in the minds of many people is centered on What amount of money is recommended to be disposed of in the event of such unforeseen circumstances.
Danielle Miura, founder and owner of consulting firm Sparks Financials, told GoBankingRates that you must have enough money to buy a couple gallons of gasoline, tips for delivery or assistance in accidents. She recommends having between $100 and $200.
On the other hand, personal finance expert and founder of specialist financial website The Wallet Moth, Yasmine Purnell, said that you must have enough money to cover a temporary emergency, which includes food, drink, gasoline, and medicines. She says having $1,000 in cash can cover immediate expenses.
Why is it not recommended to have both?
Ryan McCarthy, professional trainer at McCarty Money Matters, says that cash is the most unreliable asset you can have. Therefore, keeping it to a minimum in the house in case of robbery or fire is a good general rule.
The specialist says emergency funds should not be kept at home, but in a high-yielding savings account.. “In terms of amount, don’t let your cash exceed 10% of your total reserve fund,” he said.
McCarthy said that For security reasons, it is recommended to keep money in a safe with a lock. along with other valuables in the house. He advises making sure the box is fire and water resistant to prevent any damage.
In case of any unforeseen event or emergency, it is recommended to have some kind of savings.. A branch survey found that 48% of hourly workers in the country do not have this type of fund. The issue is worrisome because the most vulnerable workers are those on the federal minimum wage of $7.25 an hour, which is considered low income.
Source: La Opinion
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