Carry Emergency Cash to Boost Confidence

Posted On 13 April 2020

Last updated on April 10th, 2024

As I write this post, we are amid the Corona Virus crisis. This challenging time has brought to light the importance of managing emergencies and having emergency funds. It is times like these that test our financial durability. Carrying emergency cash is a part of the financial durability that my wife and I have been using for a long time.

This is a concept that I learned from the book “Rhinoceros Success” by Scott Alexander. In the book he recommends carrying $100. He wrote the book in 1980. Due to inflation, I have increased the amount to 2 of each denomination – 5’s, 10’s, 20’s, 50’s, & 100’s. Don’t worry about the singles if you’re in the US! This cash gives you options.

I have been carrying emergency money since the mid-90’s. It has been a lifesaver many times through the years. This cash is not for regular spending, only for emergencies. With that said, don’t be afraid to use your emergency money. Replace the emergency cash as soon as possible so that it is available for the next emergency.

Carrying Cash Gives You Confidence

The main reason Scott Alexander recommended carrying emergency cash was to boost confidence. Don’t flash the cash around. It’s not to spend on something “just because”. While the cash is for emergencies only, it doesn’t have to be a life and death situation; it can be used to get you out of a jam.

A time that comes to mind was when I was returning home from my sister’s wedding. I flew into Vancouver, then the plan was to take the bus home. Well, the bus station was only accepting cash, and this was a Sunday. No big deal since I had the emergency cash!

If Your Card Doesn’t Work

I’ve had a card become de-magnetized. I’ve also had the chip fail as well as the tap stop working on a card. Although, I have not had all 3 happen at the same time! If there is a problem with my card, I can use another card. If the second card does not work, I can pay the for the purchase with the emergency cash, if needed, then deal with the bank to get the card replaced. I am confident about paying when I have carrying cash on me.

When I carry emergency cash, it averts disaster, and the meal or the tank of gas can be paid for. The emergency cash is a solid Plan B in our life.

Cash Only or Cash Discount

We had a car die in our driveway one time. We made arrangements for the car to be towed to the repair shop and the cost of the tow to be added to the repair bill. This happened in the winter, and it was very cold weather. It took a couple days for the tow truck to get the car. It was also 8:30 at night. The tow truck driver offered me a $15 discount if I paid him cash right then. I like deals, and I was able to pay him from my emergency cash! The next day I was able to go to the bank and replace the cash.

Exchange Can Be Easier

Travelling across the border, I have found it is easier (and less expensive) to exchange currency than to try to find an ATM to get cash. The last several years I have primarily used my credit card to pay for things in the US. There are times, though, where a gas station offers a much better price if paying cash. We usually carry American currency with us when we travel. If we forget to get the US currency, the emergency cash can be used.

You Never Know When You’ll Need It

Emergencies come up unexpectedly! When we carry cash, we have power. We also have a confidence that we can handle whatever situation comes our way.

Several years ago we were driving to Idaho on a family vacation. About an hour into our trip we got a flat tire! The shop recommended that we replace ALL 4 tires on the van. They had a set of used tires with light wear on them. Now, we were on a tight budget for the trip and tires were not included in that budget. Our emergency cash was able to cover the set of tires and we were able to continue our trip.

I could tell more stories about our troubles, but I won’t. You get the point. Carrying emergency cash is an important part of being financially durable.

This emergency cash is not part of the 1-6 months of expenses that is your emergency fund to have in the bank. That is for the bigger problems. The emergency cash is for the smaller problems in life. A tank of gas, a hotel room, a bus ticket, or a tire replacement. When you carry emergency cash, it helps prevent you from getting bogged down with an emergency! Join me in carrying emergency cash and feel the confidence boost that it gives you. When you have that confidence, you are free to focus on more important things in life.