Dave Ramsey says: Keeping some cash at home in a safe is good option (2024)

FAQs

Dave Ramsey says: Keeping some cash at home in a safe is good option? ›

If you've got $10,000 set aside for emergencies, I'm OK with you keeping $5,000 at home in a quality safe. I wouldn't put all, or even most of it, in a safe, though. Again, just make sure your homeowners policy covers anything you might put in there. A strong, fireproof safe is a must!

It's a good idea to keep enough cash at home to cover two months' worth of basic necessities, some experts recommend. A locked, waterproof and fireproof safe can help protect your cash and other valuables from fire, flood or theft.

In addition to keeping funds in a bank account, you should also keep between $100 and $300 cash in your wallet and about $1,000 in a safe at home for unexpected expenses.

While it's perfectly OK to keep some cash at home, storing a large amount of funds in your house brings two big disadvantages: The money can be lost or stolen. Hiding cash under the mattress, behind a picture frame or anywhere in your house always carries the risk of being misplaced, damaged or stolen.

A bank account is typically the safest place for your cash, since banks can be insured by the Federal Deposit Insurance Corp. up to $250,000 per depositor, per insured institution, per ownership category. Banks that are insured by the FDIC often say “Member FDIC” on their websites.

Separate and store cash funds in different places, preferably 2 safes. Invest in a quality, professional-grade, technologically advanced at-home safe. Consider your need for a water-resistant or fireproof safe. Make sure anyone who might need to access an emergency fund of cash can.

The government has no regulations on the amount of money you can legally keep in your house or even the amount of money you can legally own overall. Just, the problem with keeping so much money in one place (likely in the form of cash) — it's very vulnerable to being lost.

Oftentimes, members of older generations perceive keeping cash, gold or other valuables at home as safer than keeping them in a bank, experts say. “I think this is more common for the baby boomer generation and older,” said Mark Criner III, senior trust strategist for Baird Trust in Scottsdale, Ariz.

For example, a dishonest worker in your home may find the cash and steal it, household pests might chew on the bills and render them unusable, or your cash-strapped teen might decide the money is there to pay for their own entertainment expenses. Unfortunately, there is no way to trace or reclaim lost or stolen cash.

It's Useful During an Emergency. You Don't Have To Pay Any Fees. It's Ready To Use Immediately. You Can Save More Efficiently.

Where is the safest place to put money if banks collapse? ›

1. Federal Bonds. The U.S. Treasury and Federal Reserve (Fed) would be more than happy to take your funds and issue you securities in return. A U.S. government bond still qualifies in most textbooks as a risk-free security.

Where Is the Safest Place To Keep Cash? Deposit accounts—like savings accounts, CDs, MMAs, and checking accounts—are a safe place to keep money because consumer deposits are insured for up to $250,000, either by the FDIC or NCUA.

Your money will not be lost. It is usually transferred to another bank with FDIC insurance, or you'll receive a check. Savings accounts, checking accounts, money market accounts, and CDs are examples of federally insured bank accounts.

Money market accounts are worth considering as well; they're FDIC-insured, and combine features of checking and savings accounts. U.S. government securities—such as Treasury notes, bills, and bonds—have historically been considered extremely safe because the U.S. government has never defaulted on its debt.

If you store your cash properly, it should last longer than you: as long as 100-150 years. The key is that “stored properly” business. Cash needs to be kept dry, away from the sun, and protected from other elements.

Even within a gun safe, many individuals who store cash will opt to place it in a waterproof container. SureSeal boxes offer a completely sealed container that is both water-proof and smoke-proof.