While digital payments have become the norm, there are still situations where cash is useful, like tipping, parking, or handling a small emergency. Yet many people aren’t sure how much to carry from day to day.
According to certified financial planner Christopher Rand, keeping $50 to $100 on hand is usually enough. Melissa Caro, a CFP based in New York, carries $60 to $80 depending on her schedule, adding more if she expects to visit places that prefer cash.
Still, some financial experts are cautious. Tipiwa Walker warns that carrying large amounts of cash poses a risk. Unlike credit cards, cash can’t be protected or disputed if lost or stolen.
Before heading to the ATM, consider your payment habits, how prepared you want to be in case of an emergency, and how much you’re willing to lose. For example, in areas prone to power outages, having cash might be practical. But when traveling, carrying too much could make you a target for theft.
Ultimately, the ideal amount of cash depends on your daily routines and personal comfort. Reviewing your habits regularly can help you stay prepared without taking on extra risk.
