So I feel like I've "gone off the deep end". I no longer trust cash sitting in my bank account for any but the most immediate needs (as in 1-3 months out).
Unlike many of my generation, I save, I invest, I don't have any consumer debt (other than my home mortgage, which is NOT underwater).
Up until last month, I tried to keep about 1 month's worth of home operating cash in physical cash, just in case, and another 5 months or so worth of cash in my money market checking account (which earns dismal returns, but it's fluid cash when I need it...)
Lately, though, I've started wondering about holding on to that much money in cash rather than saving it in PM's... So at this point, I've taken about half of what I had in cash in the bank, and converted it to physical silver and gold in my possession. (mostly silver).
So now I've got like 2-1/2 months worth of cash in the bank rather than 5. I know there will be large expenses and at some point in the next 6 months I may have to sell some PM's to make up the difference (maybe not, I generally get a sizable bonuse in late January each year, so if there was a somewhat near-term expense, that will likely make up the difference anyway).
Funny, several years ago, I spent money like it was going out of style and had a lot of consumer debt, and it didn't bother me much. I'd pay it all off about once a year when I got bonuses and such. Now, if I have less than several month's cash in the bank, I feel nervous...
So what's the turd forum opinion? Do you keep 6 or 12 months in cash, or do you just store it away in PM's and sell if needed? The danger is that if I had to sell quickly for an emergency, I might have to sell when the market's low. Considering how well PM's are doing, though, I don't think it would be much loss even if I had to see on a dip...