Emergency Cash

[Randingo]

I building up a stash of cash as an emergency fund.  Question is how much is enough.  Want to be able cover repairs, minor medical or to assist someone in need.  I am thinking $1500.00.  What are your thoughts??

Thanks!!

 

[Suanne]

I'm a hope-for-the-best-plan-for-the-worst type of person.  So, I like to have 3-6 months of living expenses socked away.

Also, when I had an older car that had more of a likelihood of catastrophic breakdown, I had more of a repair fund than I do now with a newer vehicle.

My daily living is quite frugal.  But my vehicle is both my shelter and my transportation.  I want to be prepared, as much as I can, to not lose either.  So, I try to maintain additional savings that would afford me a reasonable replacement.

Suanne ... loving the vandwelling lifestyle in my Prius.

 

[lenny flank]

I try to keep at least $5k in the bank--enough for any major repairs I might need, and a few months living expenses.

 

[user 423]

^
Unless you have a newer vehicle with a warranty, you need to set aside several thousand $ for emergency repairs. Major engine work or transmission failures can cost dearly.

 

[Spaceman Spiff]

 . . . Question is how much is enough.  Want to be able cover repairs, minor medical or to assist someone in need.  I am thinking $1500.00.  What are your thoughts??

I keep 3 months living expenses readily available.

I also pay 50¢/mile (my total cost of driving) into an account that pays for gas, maintenance, repairs, and eventual replacement of my vehicle.

 -- Spiff

 

[Randingo]

Clarification:  

This emergence fund will be kept in the vehicle.  A few years ago I was hacked and my accounts frozen for almost two weeks.  I hand maybe $20.00 on hand.  Needless to say, life sucked for those two weeks.  I currently keep $500.00 cash on hand while living in the Hotel.  Was thinking about increasing that when I move into my car in three weeks.

Again, your thoughts.

Thanks!!

 

[user 423]

^
Oh,cash cash. I'll hide a few hundred in 2 different places in the van and also have a couple of hundred on me. It used to be that traveller's checks were taken everywhere with no fuss but now it seems they are treated like other checks; i.e. possibly counterfeit so they want lots of ID and a thumbprint maybe.

There was a thread somewhere about larger amounts of cash being forfeited as supposed drug money but I doubt that would be a problem in most areas.

 

[Suanne]

I just carry a couple hundred cash.  I use to carry more but I found that every time I left my car for a hike or shopping or ??? I was worried it'd get stolen dispite a security system and lock box.

So now I carry less.  And, because I've had my account hacked as well, I keep my money split between several institutions so that I'd likely have access to at least one set of funds ... diversification.

Suanne

 

[user 423]

I keep my money split between several institutions so that I'd likely have access to at least one set of funds ... diversification.
Suanne

That is a good idea also. I've had PayPal tied to one of my credit union accounts for almost 20 years now and used to be very leery about it but not so much now. Actually, I think I will get some traveller's checks since they're free from my CU. They would be good as backup for car repairs.

 

[Every Road Leads Home]

I always keep two $100 bills folded up and tucked away in my wallet. I also have two $100 bills, another copy of my license, and a debit card tucked away in the truck, just in case I lose my wallet I have a few bucks on me and a debit card that can be used until I replace everything. The debit card is linked to a bank account I almost never use, it just exists for emergencies and has a few grand in it. I do use the card every few months for a tank of gas because one time I didn't use it for over a year and they deactivated it.

For a vehicle emergency fund, I think the ideal amount is what it would take to replace what you are driving and everything in it. If that's not a possibility next best thing would be enough to replace the most expensive thing that could go wrong, $4-5k for new engine. And if that's not possible, I'd try to at least have $1000 and add to it every month if possible.

 

[Randingo]

I am working on Dave Ramsey plan to have six months of living expenses saved, a $5,000.00 emergency fund in the bank and some long term savings.  Not there yet.

I would like to have $1500.00 to $2500.00 in cash, small bills, stashed in the car.  I know its risky and it could be lost, but it would allow me to sleep easier knowing I have it.

Money in the bank is great until you need it and circumstances prevent your access to it.

 

[Zil]

I have three bank accounts. I find access to money, where it is needed, very easy in the USA. Carrying much cash is not a good thing.

 

[Gypsy Jane]

Ideally, enough to replace an engine and/or transmission. I haven't quite managed to save that much but outs my goal, as I have had my life derailed by repairs of that magnitude more than once.

Sent from my VS995 using Tapatalk

 

[Randingo]

I have a newer car with three years left on the warranty so hopefully repairs won't be an issue for a while.  I have a credit card for emergency use only.  I have a savings account that should start to grow once I move into my car.  I use my debt card for most purchases.  So, I am going to start with $500.00 in cash kept in the car and roughly $100.00 on my person.  

Thanks for all the advice!!

 

[tx2sturgis]

$800.

But be sure to keep that amount physically separated from your party/entertainment/drinking money....or the funds can get mixed together and spent on the wrong thing!


Ask me how I know...

 

[Charlotte's Web]

..."I find access to money, where it is needed, very easy in the USA.  Carrying much cash is not a good thing."

As Bob Dylan said, "the times they are a changing."

What made sense before may no longer be wise.   While I recognize the downsides of carrying  *actual*  cash on our persons or in our rigs, it is a challenge which we will no doubt all need to address.

For a WIDE variety of reasons, digital banking--debit cards, credit cards, etc may no longer be reliable given the fragility of the digital infrastructure & debasement of currency, European bank runs, & the very real threat of central banking collapse.  Not saying this to ladle gloom over any ones head, but it is time to  *think* and begin to adapt to this changing world. 

Might be a god idea to convert some amount of savings into silver eagles.  Waterproof & fireproof.  Some other amounts could perhaps be secured well in more than one place in rig.  An adventure travelers' wallet, which I learned to make years ago, can hold some cash as well.  And of course, anyone who still uses the *big* banks might give serious thought to switching to credit unions.  

I don't pretend to have all solutions to this issue, but am  *aware*  there could be a very real problem.  That seems to be a good place to start.

Charlotte

 

[Randingo]

An adventure travelers' wallet 

What is an adventure wallet?

I do have other forms of "currency" for barter or trade if needed.

Paying with cash is always best.  IMHO.

 

[Randingo]

$800.

But be sure to keep that amount physically separated from your party/entertainment/drinking money....or the funds can get mixed together and spent on the wrong thing!


Ask me how I know...

$800.00 for party/entertainment/drinking?  Where you camped at?????

 

[tx2sturgis]

$800.00 for party/entertainment/drinking?  Where you camped at?????

lol...


True story:

A long time ago in a galaxy far, far, away, I spent that exact amount in a 'gentlemens
club' in one evening...

I left with a hole in my wallet but a smile on my face!

 

[Charlotte's Web]

What is an adventure wallet?

This wallet, dubbed a "hidden pocket" was designed by Karl Franz, author of The Peoples Guide to Mexico (first edition printed in early 70's and still reprinted/updated regularly).

Below, find a link to Karls' instructions for making one.  His books illustrate the hidden pocket, but they are simple to make, even for a weary third world traveler in a seedy budget hostel with only the required fabric & a needle & thread (dental floss works well!).

I always wear one, or even two, when traveling.  They can hold your passport, room key, travel documents, & quite large sums of cash inside your pant leg or skirt, & are guaranteed to foil pickpockets & even armed robbers.   Best to keep your daily expense $ in your regular wallet.  When secured by your belt loop they hang comfortably & invisible, under your pants/skirt.

The best fabric to make them is soft ripstop nylon--like parachute cloth.  It can be bought in small amounts at just about any fabric store.  Mine are black, which is practical.  You will also find a few strips of soft velcro beneficial.  Make sure to measure for size of a passport as well as your cash.  While you are at it, it's good to make two.  If you ever needed to abandon your rig, you'd want somewhere safe to secure your savings on your body.

Here is the link to Karls' Hidden Pocket:  http://peoplesguide.com/1pages/chapts/pack/pocket.html

Good luck!

Charlotte