How much Physical cash should one have on hand?

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silversalmon
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How much Physical cash should one have on hand?

Assuming you have some metals, how much fiat cash do you think one should have on hand? It hurts knowing the cash is becoming more worthless by the day, considering inflation, the hidden tax. My instinct is to put it in metals, and liquidate when needed, but I don't want to put all my eggs in one basket either. What do you guys think? I was thinking 10k is a reasonable amount off the hip, but maybe six months of expenses is a better measure.

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SoccerDad
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How much physical cash on hand.

Chris Martenson says 3 months living expenses, sounds about right ~10K reasonable.   Of all my available saved fiat, I'm looking to have half of it in the bank, half of it in physical cash.   All new fiat available to save from my paycheck I plan on continuing to also keep out of the bank and put into physical metals on pullbacks or into physical assets, like farm equipment/supplies for a small hobby farm.

pourty
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3 months would be nice

My personal preference is to have a few thousand dollars in physical cash, 3-6 months of cash in the bank, and the rest in bullion.

I look at it this way: if it's cash I'm going to need to spend on goods/services within the next 12 months, I won't buy PM's with it.  I don't want to be in a situation where the PM's are down (like this week) and I am forced to sell in order to cover expenses.

If I could time the market, this wouldn't be a problem.  Then again, if I could time the market, I wouldn't be wasting my time going to work each day!!!

Juan Moment
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Formula

How much Physical cash should one have on hand?

Depends pretty much on what scenario you want to prepare for and how many people one has to support.

Dependents v ; daily cash allowance per person x; duration of emergency in days y; financial parachute per person z

xy(1+v) +z(1+v)

So if you are single, no kids, able to get by on $40 a day, preparing for a possible 5 day period of ATM's not working and sticking it out where you are, that's 200 bucks.

If on the other hand you are married with 3 children and a grandma to look after, expecting to spend $30 per day ea and planning to survive 3 months on cash reserves, plus have enough liquidity to be able to bribe your family out of the country if need be, approximating $10k pp, you would want to have about $75'000 handy.

silversalmon
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good answers

all good answers boys. I like chris martenson. 3 months sounds about right, and if you have to liquidate metals after three  months, then so be it. Also having a few thousand on hand sounds good. I like that combo, a few thousand in cash on hand, plus three months expenses. Thanks!

ferretflat
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3 months is all you would

3 months is all you would need if TSHTF.  If the banks are closed it should only be for a few days.  They are more likely to have withdrawl limits (think $1000-$2000 per month) for a few weeks or months.  Anything more than this and society will simply break down and cash will simply be dirty paper.  I doubt the average person could last for more than a week without access to their bank.

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Pablo
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Now the real question...

... do you want that physical cash in USD, CAD, EUR, something else, or a mix?

ouchtouch
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It has to be the currency

It has to be the currency accepted by the people you will need to do business with.  For most Americans, that means $US. 

tmosley
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IMO that is WAY too much to

IMO that is WAY too much to hold in cash.  I would keep 5K max for a small family.  This is in addition to the bill money and emergency money.  I keep the rest in PMs.

But then, I have enough food and such to go off grid right now.  The only thing I am lacking is a more substantial photovoltaic system, and a grain garden.

Tripel_Play
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Can someone please explain to

Can someone please explain to me why it makes sense to hold cash, as opposed to PMs?  I don't get it.

stalking wolf
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CAsh on hand?

Well, from what I've gathered you want cash for a a week or so.  because if the banks went down everything goes so commerce stops, and the shelves would soon be empty, nullifying cash's importance.

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Zoltan
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Where will you spend it?

tmosley wrote:

IMO that is WAY too much to hold in cash.  I would keep 5K max for a small family.  This is in addition to the bill money and emergency money.  I keep the rest in PMs.

But then, I have enough food and such to go off grid right now.  

I'm with Tmosley

Ten or twenty crisp new ten dollar bills (shout out to mushroom) in  CDN, US, EURO will be lots if you have preps.

Better to be prepped on your own with supplies etc.

Z

Adventures
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Do you have the basics stored?

I'd say plan for 12 months. If you are good on food, water , fuel and shelter. The amount of cash on hand goes down dramatically. If you have mortgage on a home you want to keep the paradigm changes. But a good number is 3-6 months of expenses for an "Emergency Fund". Not in a money market but in cash.

I know just tucking a $20.00 bill in the wallet, or putting a bit of cash in a "piggy bank" can change your whole outlook.  It's not much but it may fill a gas tank. It gives you options and choices.

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