Quick question, how much cash do you have on-hand right now?

Having extra cash comes in handy from time to time, especially when the instruments of a “cashless” society aren’t available.  Debit cards, credit cards, checks, ATM cards, smart cards, key fobs, and the like have replaced cash as a means of payment.  However, if these items are lost or the networks they use are unavailable, the only alternative is cash.

Cashless systems are generally very reliable and robust, however they can suffer from interruptions.  This can take the form of severe weather, terrorism, hacking, electromagnetic interference, software malfunctions, network problems, or a myriad of other causes.  Sometimes however, the weakest link in the cashless society is the individual who misplaces or forgets his card.  Both can happen and one method to mitigate the affect is to have some cash on-hand at all times.

How much should you have? Three day's worth of normal expenses should see you through most events. Typically in financial systems, functionality is restored relatively quickly for obvious reasons. Even if you lose a card, a replacement one can either be issued at a financial institution immediately or gets mailed to you. So around $100-200 in various denominations would be a good starting point. 

If you have a high-quality safe, over time you can add to your cash cache and securely store it in case you need it. The goal is to have hard currency available at all times. Doing so will allow you to be more financially resilient during an interruption, and give you peace of mind.