Buzz
More people are turning to debit and credit cards for daily purchases. According to a 2017 survey by US Bank, 50% of participants carry cash less than half of the time. Among those who do, 76% carry less than $50.
Although we’re not completely cashless just yet, thankfully, a simple $5 bill can still be quite useful. So, how much cash do you usually carry on a daily basis?
Like many financial decisions, the right amount of cash to carry depends on your preferences and what works best for you. Personally, I withdraw between $40 to $60 each paycheck and use it until it runs out, unless I need cash for a specific purpose. That usually suffices in New York City, where most bodegas don’t accept cards for purchases under $10, and many restaurants operate on a cash-only basis.
This Reddit thread provides several guidelines to consider:
“Carry enough to get home. If that just means a taxi across town, then $20-40. If that means buying a new tire in the middle of nowhere, then it’s $300.” - StructuralGeek
“My go-to guideline is 120% of the cost of a full tank of gas.” - AstroturfingBot
“I keep $20 in my wallet, and $20 in my glove compartment for gas emergencies.” - duotoned
“A solid rule of thumb is to carry at least $500 in ones, so you’re always ready to make it rain.” - hazpat
Aside from emergencies, there are other good reasons to carry cash:
You’re following the envelope budgeting method
You need to tip someone (cash is always preferred)
Your cards are suspended, or you frequently overdraft
And countless other unexpected situations where cash beats cards. What’s your go-to cash guideline?
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