Stash Some Cash: Five Reasons You Need to Do This Now

iStock_000000490967XSmallBuilding up an emergency fund is an important step to help protect your family from disaster. Having enough money to cover the cost of the unexpected is one way to make sure that you won’t suddenly be plunged into debt, have to take on high interest loans, or max out your credit cards. Increasingly though, financial experts are also recommending that not only do you have an emergency fund in the bank, but that you also have a healthy amount of cash stashed in your wallet, at home or somewhere that is readily accessible.

The more you are prepared, the less likely you will suffer a situation that will wipe you out financially. Avoid an astronomical debt by thinking ahead.

Here are five reasons to stash some cash now.

In the event of a natural disaster…

Natural disasters can be crippling to an area in so many ways. If a natural disaster occurs in your area, you’ll probably need cash to be able to buy food and water, clothing, and access to shelter. Electrical power will be knocked out, which means that ATMs and credit card machines will not function.

In the event of a catastrophic disaster…

Should a major event occur that is large-scale or even global, then chances are good that the Internet will become unavailable for a short while. This could be due to anything from terrorism to an environmental event. Locally, outages with Internet carriers could also cut off access. While not being able to surf the web or check Facebook is annoying, no Internet may also mean no access to your bank accounts.

To patronize cash-only businesses…

Believe it or not, there are plenty of places still out there that will only deal with cash transactions, and you may especially encounter them while you are traveling. Imagine not being able to get gas or a car repair and being stranded.

Home-based business, farmer’s markets, yard sales, and outlier communities may all require cash to enact a business transaction. Saving money at cash-only businesses over time means that you can put the savings aside to pay off your existing debt.

To get a better deal…

Believe it or not, cash can still get you a better deal with many businesses, from retail to the service industry. While large chain stores may not be willing to work with you, smaller businesses would often rather have the cash, and avoid the credit card or processing fees. They are likely to be willing to reward you with a discount off of your purchase when you pay cash.

In the case of illness…

It is important to have medical insurance coverage for yourself and all members of your family, but most people make the mistake of relying on it completely. The reality is that insurance coverage does not usually pay for all of your medical expenses in the event of a major illness or injury. There are co-pays plus items on your bill that will not be covered. In the case of serious or long-term treatment, insurance may run out completely.

Add to the medical bills the fact that you will probably be unable to make an income. Even with extra disability insurance, your income may be reduced by as much as 50 percent. If you can’t live on 50 percent of your income now and pay your bills, you won’t be able to do it in the event of an illness.

Be smart. Be prepared. Stash some cash now.

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About Mary Ann Romans

Mary Ann Romans is a freelance writer, online content manager, wife and mother of three children. She lives in Pennsylvania in the middle of the woods but close enough to Target and Home Depot. The author of many magazine, newspaper and online articles, Mary Ann enjoys writing about almost any subject. "Writing gives me the opportunity to both learn interesting information, and to interact with wonderful people." Mary Ann has written more than 5,000 blogs for Families.com since she started back in December 2006. Contact her at maromans AT verizon.net or visit her personal blog http://homeinawoods.wordpress.com

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