Do You Have an Emergency Cash Fund?
Why Emergency Cash is a Necessity
Having emergency cash available in the event of a disaster-related emergency is very important. We are so used to relying on plastic, including both debit and credit cards, that we never imagine the possibility of a world without them. In the event of an emergency, it is possible that we will not be able to use credit cards and we may have to rely on an emergency cash fund. Are you prepared?
Keeping Cash On Hand
It’s a good idea to designate a certain amount of money for emergency purposes and keep that money either in a fireproof safe in your home or in a safe deposit box at the bank. It is almost never a good idea to store your emergency cash fund under a mattress, in drawers, or in the glove compartment of your car. Thieves tend to look in those places first because they tend to be popular hiding places that many people use.
The importance of having emergency cash readily available becomes very clear when you consider the possibility of not being able to use ATM cards, credit cards, or possibly even checks. If there is a disaster-related emergency that disrupts phone lines, credit card purchases will be disrupted because credit card transactions depend upon modems transmitting information. Stores will not want to accept credit cards because they won’t be able to complete the transaction electronically and can’t confirm your available credit limit. ATM machines wouldn’t be operation either. If the bank isn’t open, you could be out of luck. Having a spare fund of emergency cash accessible can really make things easier for you if you are faced with a disaster.
Plan Now
If you haven’t already done so, designate a certain amount of money for emergency-purposes only and place it in a fireproof safe in your home or in a safe deposit box. This fund of emergency cash can be a beneficial resource should you be faced with the inability to use plastic or checks in the event of a widespread disaster.