Small amount of cash put away.

[mitunnelrat]

Katrina, the number I'm eventually shooting for is $1,000 on hand.

I got that from Dave Ramsey's book "Financial Peace." Its his recommendation to keep that amount as an emergency fund while you pay your debts off, then increasing the emergency fund to be able to cover a full 3 months of bills. I've heard of the 3 month mark from numerous other sources too, including a company I used to be a rep for. Its recommended that overall amount be placed in a money market account, but I figure its a good idea to keep the grand available in cash. I'm going to split it and keep about $200 in my car for roadside emergencies. I've already learned firsthand how expensive towing can get.

[ladyhk13]

That is true MTR and once you get out of debt or are able to add more to your emergency fund I would continue adding cash to build up to even 6 months if possible considering the uncertainty of the next couple of years. Dave Ramsey rocks...listen to him almost every day. Him and Phil Valentine are awesome.

[Onestep]

Dave's recommendation of $1000 is the minimum emergency fund you should have. He goes further in his steps to increase it to 3-6 months of "living expenses" eventually (mainly to cover income loss due to loosing a job). Listen to him daily and have read his book.

As for the "cash" at home, I try to keep in the safe about $700 total.
$50 in $1's
$150 in $5's
$200 in $10's
$300 in $20's
I also have a supply of loose coins in a coffee can as well.

If power goes out, this will get you thru a pretty good spell.
Also is nice to have on hand in case a must have "deal" comes along.

We always keep $100 in cash on our persons for emergencies.

[Katrina]

Thanks guys and gals,
This has been helpful. I'll be increasing the COH. mtr, good idea on cash in car, didn't think of that as we have roadside service but if the tow person don't take it or credit cards,(my pop had that happen to him once), I'd be sol.

[mitunnelrat]

I was going largely off of memory on the living expenses amount, but I'm not surprised that recommendation extends to 6 months. That would make sense, I've been laid off for tha long before. I also think its a good idea to have cash in your pocket. I figured the car was close enough to that for me.

[mitunnelrat]

And that's why we're here, Katrina. Always glad to be of help