Why everyone needs to have a secret money stash

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By: Amy
on 6th Sep,2013

When worse comes to worse, a secret money stash can serve as an emergency fund. Listed below are some of the benefits of having a secret money stash.
Why everyone needs to have a secret money stash


When worse comes to worse, a secret money stash can serve as an emergency fund. It is wise to keep some money secretly stashed away for easy access in the event that a disaster strikes and makes it difficult for you to use your credit cards or withdraw cash from the ATM.


If you tell your family members or friends that you are keeping a cash stash in your house, you can expect to be asked why. Why not put that money in the bank, where it’s safe?Why not deposit the money in a savings account, where it can earn interest? What happens if your house catches fire? What if somebody breaks into your house? Why not invest the money instead? Despite the questions and the skepticism you may receive, keeping a stash of money at home is a very important and helpful personal finance tip. Listed below are some of the benefits of having a secret money stash.

• Natural Disaster Aversion- You may think that natural disasters rarely happen where you live. While it may be true that they occur much less frequently in some places than others, it is still very important that you prepare for them. When a natural disaster strikes and a blackout occurs, ATMs won’t work, banks will be closed, and shops and other establishments will be less likely to process credit cards. If this happens and you don’t have cash safely tucked away in your home, you may have a hard time buying batteries, food, water, and anything else you need to get you through the disaster.

• Emergency Funding- It is very important to have some cash on hand for emergencies—especially for instances when you need medication for allergies or asthma or when a family member needs some urgent financial help—so you can avoid having to drive to and wait in line to use the ATM.

• Convenience- Having money secretly stashed away can also be convenient. If you’re going to hang out with friends and find out that you don’t have enough money on your person to pay for the activities you’re going to do, you don’t have to get up and make a trip to the ATM. You can simply use the money in your stash and replace it whenever taking a trip to the ATM is convenient.

• Paying for Delivery- How many times have you had food delivered and used your credit card to pay for it? This may sound totally normal and harmless, but with the increasing rate of identity theft and credit card fraud, it is very important to be extremely cautious of whom you give your credit information to and which establishments you use it at. To lessen your risk, use the cash you have at home to pay for the delivery.


If you decide to keep a cash stash at home, keep in mind that homeowners and renters insurance policies have limits with regards to the amount that they will cover in the event that your house gets robbed or catches fire. As such, make sure that the amount of money you keep at home is simply enough to cover your needs. Perform a credit check to see if there are any outstanding debts you need to pay, tend to your financial obligations, and put away some money to serve as your emergency fund. From this emergency fund, estimate how much you will need in the event of a natural disaster or other emergency and keep that amount with you at home. Also keep in mind that it is never recommended to keep huge amounts of money in your home or wallet because, aside from not earning interest, the money does not come with any security or protection. Keep just as much as you need, and if you use it up, simply replace it.

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