A Reddit user from South Florida recently asked a simple but surprisingly divisive question on r/personalfinance: “How necessary is it to keep a stash of cash?”
They explained they had about $2,000 in a lockbox at home, but wondered if it might make more sense to just keep it in the bank. That kicked off a wave of opinions from many commenters across the country.
Cash Still Matters In A Crisis
Many of the most-upvoted responses came from people who had lived through hurricanes, blackouts, and natural disasters. They were quick to say that cash can become essential when digital systems fail.
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“Cash is king,” one person wrote, who said they lived through 9/11 in New York, Hurricane Katrina in New Orleans, and a major ice storm where they live now. “You want gas, you need cash. You want groceries, you need cash. When there is no electricity, you need cash.”
Another Florida resident added, “This 100% happened to me. No power for days.”
Several people said they kept anywhere from $500 to $5,000 at home. One put it simply: “It could happen, it could never happen. But when it does happen… you may not have a neighbor to fend for you.”
How Much Is Too Much?
Some felt that $2,000 might be excessive, but still reasonable, depending on your risk tolerance. “It’s not financially efficient, but you seem to know that. If it makes you feel secure, it’s fine,” one person said. Another pointed out that the interest you miss out on is minor: “$2,000 in a bank account is going to make roughly $60 a year. I think losing $60 is worth it to reduce my anxiety.”
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Others suggested that $500 to $1,000 is usually enough for most emergencies, especially if you live somewhere with stable infrastructure. “You’re never really more than like 2-3 days from being able to access a bank,” one person noted. “And if you are, cash will be the least of your worries.”
Everyday Uses Beyond Emergencies
Several people mentioned that cash comes in handy in more mundane situations too. A plumber offering a 10% discount for cash saved one person $200. Another said, “I use cash for a lot of transactions lately because merchants are charging 3.5% to use a card. I recently paid $800 at my tire shop and using cash saved me $28.”
Parents also chimed in about kids needing last-minute lunch money or school trip payments. And those who frequent yard sales, flea markets or Facebook Marketplace deals said having cash ready gives you an edge.
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But Some Still Say It’s Overkill
Not everyone is on board. A handful of people felt that keeping that much physical cash is unnecessary or even risky. One person said they hadn’t touched cash in five years, while another joked, “If there’s some emergency I’m turning to the tried and true method of looting.”
Others pointed out the risk of theft, fire, or simply forgetting you have it. “Make sure your lockbox is truly fireproof,” one commenter warned. Another added that home insurance usually only covers up to $1,000 in cash, if that.
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