How Much Cash Should You Keep on Hand for Emergencies?

We live in a digital world, but during a crisis—when power is out, ATMs are empty, and card readers don’t work—cash becomes king.

If there’s a prolonged power outage, natural disaster, or banking system disruption, having cash on hand could make the difference between getting the supplies you need and going without.

Why Cash Matters in an Emergency

• Power outages: No power = no card machines.
• Bank closures: Disasters sometimes shut down banks and ATMs.
• Evacuation: If you need to leave quickly, cash helps you pay for gas, food, or lodging.

Digital money is great when systems work. When systems fail, cash is a lifeline.

How Much Cash Should You Keep?

There isn’t a one-size-fits-all answer, but here’s a guideline from emergency preparedness experts:

1. Start with $200–$500 for immediate needs.

This covers:

• Groceries
• Gas
• A night in a budget motel

Eventually you will want at least enough to get you 100 miles away in case of evacuation and a motel/hotel stay for at least 3 days.

2. Aim for 1–2 weeks of essential expenses.

Think about your family’s bare minimum needs for two weeks:

• Food
• Gas/transportation
• Medical supplies
• Shelter

For many households, that’s $1,000–$2,000 in cash.

3. Build up as you’re able.

If saving that much at once isn’t realistic, start small. Even $20 a month set aside in cash adds up over time.

What Denominations Should You Keep?

Big bills are harder to use in a crisis.

• Best mix:
  • Coins, $1s, $5s, and $10s. Assume that no one is going to have change, so small bills to be able to pay the exact amount is best.
  • A few $20s for larger needs

Avoid relying on $50s and $100s. Stores may not have change during a disruption.

Where Should You Keep Your Cash?

Cash storage is about security and accessibility. Here’s a layered approach:

1. At Home (Primary Stash)

• Keep enough to get through 1–2 weeks.
• Best places:
  • A fireproof, waterproof safe bolted to the floor
  • A well-hidden location only your household knows

Avoid obvious spots like under the mattress or in the freezer.

2. In Your Emergency Kit / Go-Bag

Keep $100–$200 in small bills for quick evacuation.

3. Split It Up

• Don’t keep all your cash in one place.
• A small stash in your vehicle (hidden, not in the glove box) can help if you can’t get back home.

A Few Extra Tips

• Don’t announce your stash. Keep it private, even from friends.
• Check it once a year. Rotate bills if they’re getting old or damaged.
• Hide cash with copies of important documents.

Final Thought

In an emergency, cash is more than just money—it’s peace of mind. Start with a small amount, grow your stash over time, and keep it in safe, accessible places.

Preparedness isn’t just about food and water—it’s about giving your family options when the unexpected happens.

Cash on hand is only a small part of what a person should have to be financially prepared. Please do not confuse cash on hand with an emergency fund.

To learn more about how to build an emergency fund, check out this article.

To learn more about Financial Preparedness, check out this article.

To learn about how to prep on a tight budget, check out this article.

To learn about how to prepare for emergencies without going broke, check out this article.