Comments on: Should An Emergency Fund Always Be In Cash?

By: Lorrie

Lorrie — Tue, 14 Apr 2009 11:22:32 +0000

Over the years we have managed to build up an emergency storage of food, water, clothes, etc. to last us a year. Some people have looked at us like we have 2 heads when they have seen our storage.

We discovered how much of an advantage it really was to have it when my husband was out of work for 5 months. With the increase of natural disasters and the huge number of lay-offs going on, it makes sense to prepare ahead. You never know when a disaster in some form will happen.

By: Kristin @ klingtocash

Kristin @ klingtocash — Sat, 11 Apr 2009 13:02:28 +0000

It’s an interesting question. I’ve never thought of my pantry as emergency savings. The way I look at it, my emergency savings is for those unexpected expenses that might come up (getting the transmission on the car fixed, major unexpected home repairs, etc). While I believe that you should be prepared for the unexpected, I think that should be separate from emergency savings.

I’m torn about having gold in your emergency savings. While I do think we are going to have crazy inflation soon, I’m not sure how easy it will be to get what your gold is actually worth quickly, if there is an emergency. I’d be interested to see someone do a blog post about that. Might have to do some research after tax season is over.

By: tom

tom — Thu, 09 Apr 2009 15:22:44 +0000

That is a good approach because what if certain foods get really expensive.
What if stores close down, what if theres riots, what if these riots cause power outage.

What if they replace the USD with a new currency?

These are all things to consider, but i think you should still have cash as emergency fund for your monthly obligations, in case something comes up.

By: Debbie

Debbie — Thu, 09 Apr 2009 13:52:51 +0000

I have been involved in preparedness for many years primarily because it is something my church advocates strongly and I work for the State so we also address this issue from a public health and safety position.

It is important to have some cash. In a disaster, ATMs (and other electronic card readers and computerized “tills”) may not function, or if they do, could be quickly drained dry. Large bills could be useless too. If you need to buy a small ticket item but the vendor cannot change your large bill, you will end up paying too much for that much-needed item (or go without it). So, a certain amount of small-bill cash makes sense. I would say several hundred dollars would be ideal.

I don’t think we should put all our savings in a mattress or other unsafe place where thieves may break through and steal or our Alzheimer’s kicks in and we forget where we put it (or we die and our family doesn’t know). But, we do want to be able to access enough to survive for a few weeks, as opposed to money market certificates or something not readily available.

It would benefit everyone to think about the unforeseen and plan for disasters. They can occur in many different ways. By being as independent as possible with preparations made now, including 72 hour kits for emergency evacuation, we can rest more easily. We can’t prevent the unexpected calamity but we can ease some of our fears about survival.

By: caryn verell

caryn verell — Thu, 09 Apr 2009 04:15:13 +0000

forget the generator unless you have a medical need for emergency medical ecquipment. however try to have two sources of heat and two ways of cooking…for instance, my home is all electric but i had propane installed and got a gas stove/and gas fireplace insert. bulk purchases are good if it includes such items as dryed beans etc..seed is good-does’nt have to be heirloom.a good multiple vitamin+mineral is good to stock up on-don’t waste money on a bunch of supplements. have a good stash of ones, fives, tens and twenties…most common folk don’t have any need for gold or silver as most dont have this anyway.Stretch a clothesline and use instead of dryer. make your own water barrels and collect rainwater for your gardening needs.. after you have done all of this you will feel so good about yourself and your accomplishments that you won’t miss your other life.

By: caryn verell

caryn verell — Thu, 09 Apr 2009 04:00:19 +0000

ten years ago when i was in debt up to my eyeballs, i took a real hard look at my lifestyle. changes needed to be made, no matter what the economy was doing. i kept a list of needs, wants and wishes..almost everything i owed money on is now paid off. there is now money in savings and emergency money near at hand. my pantry is full thanks to gardening and homecanning as well as good sales. we might eat out 4 times a year if an occasion arises..(big money saver) and our son went through seven years of college on scholarships and part time jobs. today my husband and i are both retired…but, that does’nt mean we quit earning a little money here and there. i take in sewing, and sell fruit from my own trees. my husband is currently a census worker. you will feel better when you have control over your life and life is not controlling you. you don’t need to get rid of your animals-you need to make up your mind to do the things you need to do to keep what you have.

By: Diana

Diana — Thu, 09 Apr 2009 03:01:24 +0000

My husband stocks up on things. One time his brother was over and mentioned something about the tuna. We said that he was preparing for the tuna shortage and his brother said he was causing the tuna shortage.

By: Sandy

Sandy — Wed, 08 Apr 2009 21:03:59 +0000

I wouldn’t put all of my emergency fund into those items, but when it comes right down to it…you can’t eat the cash. I think those are all good choices, depending on your family’s needs and the emergencies you are most likely to face.

By: Brooke

Brooke — Wed, 08 Apr 2009 14:40:41 +0000

i definitely think that an emergency fund should be more than just money…we could eat for several months needing few things from the store if we had to.