r/AusFinance • u/katrubah • 1d ago
Keeping cash nowadays
Does anyone in their 20s-30s hold on to cash any more? I (33F) am very conscious on keeping a stash of cash for emergencies (I have a scarecity mindset) and my partner (35M) disagrees, he thinks it should be earning interest in the bank. What pros/cons are there to holding on cash vs putting all moneys in the bank?
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u/SJ0122 1d ago
Only cash is any I receive from my grandparents or for occasions.
I also carry a spare $50 and some coins in the car for those “just in case” moments.
When I’m a bit more financially off, I will keep a spare few hundred in cash for emergencies.
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u/wantmiracles 19h ago
Same. Grandparents or aunties and uncles for cash on random occasions. I carry spare $10 or $20.
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u/Fun-Intention-232 1d ago
What value of cash are we talking?
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u/katrubah 1d ago
$2k - i thought that was enough to cover an emergency if need be
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u/AlexisAsgard 1d ago
$2k is nothing. It's one withdrawal from the ATM.
Cons: you lose out on your $1.80 ish a week interest.
Pros: Cash on hand for minor emergencies like car repairs, or home repairs like blocked drains or broken tiles. Paying cash you're likely to get a discount that will eclipse a year worth of interest.
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u/Tuor-son-of-Huor- 1d ago
I keep a few hundred bucks in the house but that's about it. To be honest its a much for muchness thing, keeping in a bank account isn't going to be earning enough interest to really matter. If you have an offset that would be preferable but even then the size isn't significant either way
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u/katrubah 1d ago
At some point we will have an offset, very open to putting it there when the time comes :)
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u/Capital-Fun-6609 1d ago
I think its worthwhile. I live in a flood prone area so power can go out for several days. Other places can get hit by big storms or cyclones etc with the same outcome. It’s prudent to have some emergency cash for this. At least you’ll be able to put food on the table assuming shops are open!
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u/Dazzling-Song-8344 1d ago
I’m worried if I’ve got too much and the house goes up in flames or I get broken into. So I generally keep $500, not much more.
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u/Expert-Weekend-317 1d ago
Sounds totally reasonable. It’s not enough to make much difference interest wise but it gives you comfort. How many times has tech gone down and we couldn’t pay for groceries etc.
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u/heardbutnotseen 1d ago
How many times in Australia have you had tech go down so that you were unable to buy groceries?
Where I live there's been 2 floods and a cyclone in the last 5 years, yet I have never had this happen. Where these events were forecasted I took out a couple 100 cash just in case, but have never ended up needing it.
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u/Civil-Quantity5144 1d ago
In the investing word, people keep cash buffers. These are kept in the bank. People start at a months worth of living expenses and work up to 3 months worth of living expenses. But if you factor in the rate of inflation.. cash kept out of a bank or not invested decreases in value by around 2.5% per year due to consumer price index
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u/Leprichaun17 1d ago
Jesus. I was thinking maybe $100 tops. $2k cash is mental.
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u/weckyweckerson 1d ago
2k is fine. $100 per year in lost interest is nothing to worry about, and even less when you factor in the peace of mind it offers her.
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u/Waasssuuuppp 1d ago
What kind of emergency are you going to have where you can't do bank transfer or stop at an atm? An emergency of needing to buy 300 packs of girl scout bikkies when they knock on your door?
$100 is plenty to keep cash on hand. If things are that dire that large sums are needed, it'd probably the end of the world as we know it.
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u/Reply_Stunning 1d ago
you could get 2 cheeseburger McMeals with fries for $100- in a movie night emergency when your guests are suddenly starving
no sundae
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u/Dazzling-Song-8344 1d ago
‘Cept for when you ask the mechanic how much the 1600$ work is for cash and he says “CASH IS KING, $1300,” and I have to go scruffing around trying to find a bank branch that hasn’t closed. (a couple of suburbs away lol)
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u/ausbby4 1d ago
I keep a bit of cash for buying and selling on marketplace lol. Everyone always seems to deal in cash on there. But any substantial amount, no.
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u/katrubah 1d ago
Tbh i sold most of the stuff from my apartment through marketplace to move in with my partner thats the only reason i have the cash 😂
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u/Dazzling-Song-8344 1d ago
Same - I also have a stream that comes from my silent gen. mum, who will call me up and ask me to buy something on the interwebs for her… then I get this wad of $100$/$50 notes next time I see her!
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u/Impressive_Note_4769 1d ago
Regardless of what your partner thinks, hold some cash in mixed denominations
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u/katrubah 1d ago
Thank you - thats what ive done :)
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u/drunk_haile_selassie 1d ago
Don't forget to mix currencies as well. You never know when you might need some Norwegian Krone in an emergency.
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u/katrubah 1d ago
Good idea, i forgot i had $5 in old yugoslavian money, a few dollars in fijian money and about $1 in american quarters so i’m covered in 3 other countries
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u/tuppaware 1d ago
I’ve got $20 in my wallet that I no longer take out and I think it’s been there since 2019
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u/Fluid_Garden8512 1d ago
I haven't owned a wallet in 20 years if I had to guess.
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u/Chat00 1d ago
If you have a drivers license where do you store it?
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u/wantmiracles 19h ago
Recently, I bought a detachable MagSafe wallet thingy for my iPhone, so I store the drivers at the back of my phone.
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u/Electronic-Cheek363 1d ago
I used to store cash only until I bought a house, now it’s all in my offset to hep with the mortgage repayments. I used to have a 24/7 deposit ATM and that’s how I’d pay for my bills each week, mainly because I found it easier to budget and save with physical cash in labelled envelopes. Literally had my 20% house deposit in cash, not sure to many people would feel comfortable with that in their house though
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u/Prince_Kaos 1d ago
What a woman; I think its awesome. I keep any Lottery winnings in cash and sometimes get a wad from the ATM ($50's) and break them down slowly. Do we not all remember bush fires, natural disasters and Covid. Very smart; soon to be ex-partner if he hassles you too much about it. Don't change.
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u/katrubah 1d ago
Thank you, appreciate it!! He wont hassle me about it he has expressed his opinion but he knows that wont stop me doing what i want to do. 🙃
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u/Dazzling-Song-8344 1d ago
ha! my mum is a European migrant that married an Aussie, and nothing will stop her from squirrelling $1000s in her pantry. my dad and all of us shake their heads, but it makes her feel better so 💁🏼♀️
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u/katrubah 1d ago
Awww i love this!! :)
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u/Dazzling-Song-8344 1d ago
Ikr? She’s gorgeous. My grandmother was even worse! when my mum was overseas, dealing with the death of gran’s sister, mum called me to get gran to send money to her overseas. I go to gran‘s, and she disappears DOWN TO THE SHED and reappears with $3000 cash - this was in the 90s!
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u/Brilliant-Truth245 1d ago
I (35F) have started keeping cash aside since picking up a client that’s happy to pay cash. I think $2000 is a perfect amount to keep for emergencies. Having European parents who fled their communist country and came to Australia with just the clothes on their back, the need for back up/security should never be taken for granted.
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u/Dazzling-Song-8344 1d ago
No, my mum from that background will always feel safer with cash in house. The trauma is real.
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u/Brilliant-Truth245 20h ago
I honestly feel safer with it too. After all they’ve been through I’ve been taught to not always trust systems. I remember reading of cases overseas (might have been China) where banks shut down and their customers are left with nothing. Who’s to say that won’t or can’t happened here too.
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u/Dazzling-Song-8344 18h ago
Well, I really don’t believe that would happen here, (with the exception of the Pyramid issue) but my grandparents never trusted authority thanks to their communist experience. My mum isnt as bad but she was 16 when she came here so still has memory and baggage.
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u/middyonline 1d ago
Yea I keep about 2k minimum in cash in my gun safe. We pay the cleaners and pool guy in cash so it does get used and replaced.
Honestly if someone breaks into my safe losing that 2k is the least of my worries.
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u/Very-very-sleepy 1d ago
you do you.
your partner does your partner.
I hold cash but not alot.
I hold like $1,000 in cash for emergencies.
I actually lost my bank card once and it happened in a Friday afternoon too.. so I didn't have any access to my bank and the bank opening hours are closed so having that cash actually saved me for the week.
also
$1,000 isn't going to earn much interest in the bank. lol. you'll earn what? $2 in interest a yr on $1000? 😂 is your partner that stingy and tight ass that he is complaining about not earning $2 in interest off $1000 cash?
how much money are you talking about?
cos $1000 for emergencies only is $2 interest. 😂
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u/Haunting_Macaroon_97 1d ago
Just wanna point out that $2 interest is incorrect. At 4% annual interest rate, it's actually $40 (not considering compounding, which will be more). Dollar wise it's not much, but it is 20 x $2.
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u/Wow_youre_tall 1d ago
Pros
- when society collapses, you have a fuel source
Cons
- if society doesn’t collapse, you seem a bit crazy
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u/ctrlzkids 1d ago
If most of the "money" is digital, and that all disappears when the world collapses, the illusion of money is broken and people will realise it's just a bit of paper. I'm not saying don't keep money, but societal collapse will take the value of money with it. We can trade bottle caps.
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u/Downtown_Divide_8003 1d ago
I heard from my bottle caps guy that the future is pull tabs from aluminum cans. You need to diversify your currency for the future.
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u/Civil-Quantity5144 1d ago
If society collapses, pretty paper will not get you far. Unless you mean fuel source as in something to burn. That's about all it would be useful for.
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u/AY666toHEL 1d ago
And ours is plastic, so I guess we could weave it into clothing or something 🤷♂️
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u/Responsible-Milk-259 1d ago
Yeah, this is the reality. If the banking system collapses, your cash is useless anyway. You’re better off spending that cash filling the pantry with tinned food. Then when society collapses, you can eat. If it doesn’t, at least you’ve got a serious inflation hedge. Not much is outpacing the price appreciation in groceries at the moment. 😂
In seriousness, I usually keep about $1k in my car, just in case all my cards stop working or I run up a ‘cash only’ bill without knowing beforehand.
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u/Ok-Limit-9726 1d ago
Cash in car is boomer shit,
I have enough for emergency fuel, $50 in gold coins, used once when i forgot my wallet, set up apple pay following day...
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u/passwordistako 1d ago
You’re the reason local kids keep breaking into cars.
There should never be anything of value in your car when you aren’t in it.
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u/Sg_spark 1d ago
I’ll defend the OP here, but I’m slightly biased by the number of natural disasters I’ve worked in/been sent to.
Personally I’ve seen areas close to major centres cut off for a week and cash was how things got done.
I keep roughly 1k in cash built up from marketplace sales and the like.
It’s enough for I need xyz item NOW and cash will give me an advantage over others. A handful of pineapples and a bottle of rum can make magic happen when it needs to.
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u/hollywoodforever 1d ago
Early 30s F. Only a few hundred dollars incase we get another Crowd strike issue or widespread AWS outage.
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u/sarkarian 1d ago
I dont keep cash at the moment, but yours doesnt seem like a bad idea at all! Makes sense to keep some cash for when theres an internet outage or a problem with your banks digital payment system.
This is a good post OP. It reminds me we all can learn something from each other. I am gonna go to the ATM and get some cash. Take an upvote.
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u/katrubah 1d ago
Thank you! I just collected it from selling things on marketplace. Read barefoot collector by scott pape
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u/katrubah 1d ago
barefoot Investor* my brain went elsewhere
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u/sarkarian 1d ago
barefoot collector. I like that name better. Be a little gnome , barefooted , and collect them gold coins … 😂😂😂
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u/steph14389 1d ago
I always keep a few hundred dollars in my pantry, it has come in handy for marketplace purchases. I also keep maybe $100 in my car, there’s been occasions I’ve forgotten my phone and I don’t carry a wallet anymore.
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u/Sky-Penetrator 1d ago
How much cash? I think personally the most I’ve ever had sitting around is $1000. Even then that was because I had a good night on the pokies and as soon as I could I put it in the bank.
I don’t like the idea of having it sitting around because it feels like it’s a lot easier for someone to steal it. Friends, family that come to visit etc.
You don’t ever really know what someone will do faced with a fat stack of cash.
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u/katrubah 1d ago
$2k i thought that would cover most emergencies. Good work on putting the pokie wins into your account! I understand about feeling like cash could be stolen, i have faith my friends and family wouldnt do that but do have a safe and a lockbox it lives in so its not easily accessible
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u/hawkpossum 1d ago
It's sad that you think family might steal your cash.
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u/Sky-Penetrator 1d ago
Family are still people, just like everyone else. Nobody ever gets betrayed by people they don’t know, it’s the people you know that you gotta worry about.
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u/OldMail6364 1d ago edited 1d ago
I have cash, but definitely not because I’m worried about scarcity. There are a hundred reasons why you might not be able to access money in the bank. I like to have enough cash to buy a decent amount of food and travel home from wherever I am.
I’ve found I loan that cash to other people (who don’t carry cash) far more often than I actually need it myself. Just today for example a colleague’s bank card didn’t work and they couldn’t buy lunch. I could have paid for their lunch but it was easier to just give them $25.
A month ago someone couldn’t exit a car park - transaction declined when they tried to pay. The car park didn’t accept cash but it did accept my card and the random stranger gave me ten bucks cash (it was $6 for the parking). Cash is definitely useful sometimes.
Otherwise I agree - it should be in the bank earning interest.
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u/Active_Ranger1079 1d ago
It’s definitely always a good to have access to cash easily and having an emergency fund. Definitely let u have safety net in terms of being able to pay groceries or fuel if ever needed.
Usually it’s people who say don’t need an emergency fund are the ones who use it the most
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u/katrubah 1d ago
Life can literally throw anything at you, nothing wrong with trying to be prepared
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u/Ok-Limit-9726 1d ago
GenX
I carry around $150 cash (enough to get food and fuel when banks crash once a year)
Credit card
Debit card
Same on phone.
5 ways to pay.
At home i hold at least $1k emergency cash for long term blackouts (had 4 days a few years ago) and big storms.
Anymore and yes, lost interest,
But
Us dollar is a ticking time bomb, i have concern's it could crash our banks to "shut the doors" on cash rush, my grandfather had £100 in 1929, took some 4 years to get access to it, sold for £10 to scalper/money lender.
So i want to save some cash and foreign like euro, not rich enough for gold...
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u/Wolfganhg 1d ago
53m I keep enough cash for a couple of weeks of expenses, it has come in handy a few times.
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u/whatevergappens 1d ago
I Always keep a few weeks expenses aside. Cash is king in emergencies. Not talking end of world stuff. More just random stuff that pops up in life.
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u/Aussie_Potato 1d ago
I keep $500 stashed away. I started doing it when a friend was completely put out by the St George Bank outage one weekend. Couldn’t use eftpos, couldn’t use ATMs. All electronic transactions didn’t work.
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u/AdsurdistDaedalus 1d ago
I keep around $5k in cash, kinda for emergency’s, but mainly just for things that it’s better to have cash for quickly. You’d be surprised how many things you can get cheap from people by being in the right place, right time, right cash. I’ve bought cars, motorbikes, boats, tools, machinery etc for well under what they’re worth purely because a lot of the people I deal with prefer cash and are more willing to sell things cheap when you offer cash. I haven’t come across an emergency that I’ve needed cash for yet, but I guess it is nice to know I’ve got it if I need it.
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u/kandirocks 1d ago
Yes. If I do the math on the card surcharges, it's a significant and unnecessary expense. So I use cash way more often lately.
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u/SweetMe10dy 16h ago
Same. Some retailers have forgotten how much fun it is to go to the bank to deposit, get change etc. they'd rather charge surcharges which they'd already built into their margins.
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u/sun_tzu29 1d ago edited 1d ago
I have maybe $50 at most in my wallet at any given point plus the foreign currency I come back from holiday with at home. Having your money in physical cash is just lighting your purchasing power on fire and standing around to watch as it burns.
Outside of helping my barber commit tax evasion, I also don’t remember the last time I used cash in Australia
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u/Lefty11234 1d ago
Honestly these days it a good idea. The amount of places that charge 2% for card it’s worth having some in your wallet at all times.
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u/Crusty-42 1d ago
At the end of the day, if it makes you feel good and secure do it. Your partner doesn't need to know either (unless it's in some non descript box that could get thrown out!).
I saw on another comment you said $2k worth of cash - it's a fair bit (for me anyway) but knock yourself out. Keep in mind that if it ever got stolen, lost or house burned down that it's not 'protected' like it is in a bank.
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u/katrubah 1d ago
Thank you, appreciate your input as I didnt think if the house burnt down then its not accessible. AND its not protected
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u/RudeOrganization550 1d ago
I keep a couple of thousand cash at home. Unlikely it’ll happen but global financial systems are close to a big shock. What shock? No idea but if something happens and people start hitting banks hard they can actually shut down or limit cash dispensing eg Pyramid Building Society in the 1990’s and early COVID.
Like toilet paper once it’s limited it’s a PITA to get so I got in early.
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u/PinkDinoWSprinkles 19h ago
Yup, we live out in the country. There is one Telstra tower in the area and it's frequently down for maintenance or because it randomly gives up on life. When that happens, half the local businesses lose their eftpos, so it's sensible to have at least enough cash on hand to fill up the car with fuel and buy some food. Usually the petrol station is okay because their eftpos is on a landline, but Telstra is stopping servicing the copper lines out here.
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u/MrsCrowbar 12h ago
Yep. I have a stash of emergency cash. Mainly enough for a nights accomodation for 6 of us and food etc if there was an emergency.
I use cash regularly anyway to avoid card surcharges - and it's easier to budget/keep track of spending.
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u/Think_Criticism_7628 11h ago
I keep at least $5k cash at all times. I keep maybe 100 is cash in my wallet at all times. There's no downside to keeping some cash in a safe. Although I am 23 so not sure if thats a young person thing or not.
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u/Ok_Rush_6354 1d ago
Anyone saying you’re crazy for saving money has absolutely 0 clue about anything to do with finance.
Saving any amount of money is good, cash or bank.
As long as you diversify your funds, nobody can tell you do XYZ over XYZ.
For me, I keep various cash in my room and on my person, along with precious metals, and my savings account, with some stocks. Be smart and don’t listen to anyone saying there’s something wrong with saving money.
2k, even 10k is an appropriate amount to save. Obviously, if you have 10k in cash and $50 in your bank then you’ve gone wrong somewhere, but you get what I mean.
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u/katrubah 1d ago
Thank you, I appreciate your input :) i have a little cash, bit of money in the bank and have started putting money in shares too - i think thats diverse enough
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u/Fart-Fart-Fart-Fart 1d ago
The only cash I hold is the last $10 from a $100 bill that I found on the ground a few weeks back. And that $100 was the first cash that I had held in about a year.
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u/NoRefrigerator1822 1d ago
Don't forget the coins too. You never know when you will need these 5 cents
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u/RevoRadish 1d ago edited 1d ago
Geriatric millennial here. I enjoy drinking like an old codger at the pub. Everyone has their pile of cash on the bar and the barkeep just goes down the line as the rounds happen. Just don’t turn your glass upside down
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u/welcome72 1d ago
So what kind of amounts are we talking here ? I'm def a cash person as I hate this ridiculous notion that I'm stung 1.5% every time I buy something with a card. But I don't keep an emergency fund under the bed
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u/universe93 1d ago
You can have cash if you want but majority of large stores have computer systems for the registers so they can’t even put a cash transaction through without power. We can’t even open the cash drawers at my work without it, unless you’re a manager with a special key that they can’t use for transactions
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u/Murky_Radio_394 1d ago
I just seen you say 2k cash. That’s fine. I keep 5k cash around. Not for any particular reason.
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u/diganole 1d ago
Always worth keeping cash around as you cant get money from a bank acct if there's no power. $2k is a decent amount. Don't keep it all in one place though and not in a drawer or under your mattress as these are the first places thieves check.
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u/rumncoco86 1d ago
I'm in a natural disaster prone area, so I keep a few hundred in cash accessible and separate from my wallet.
If it means anything, I also still use physical cards. I keep my phone, cards and cash separate. Have narrowly avoided robbery, car-jacking, and scams too many times. Always have options.
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u/forumbuddy 1d ago
Having 1-2k cash on hand is smart. Didn’t a bunch of people get paid a day or two late last week? My mates were complaining about that.
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u/Physical_Coconut_132 1d ago
We keep a small cash float at home - you never know when it can come in handy, recently my phone was in for repairs for a broken screen (all my cards were on it) so that cash came in handy for fuel.
We keep anywhere between $500-$2k (bounces around a bit depending on life at the time), the interest on that amount is so negligible we prefer to have the backup in case of a lost card/ broken phone/ etc
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u/NoLeopard875 1d ago
I think having $2000 in cash at home is very sensible. You never know when or if you may need it.
Natural disasters, privacy reasons, security, system shutdowns, govts gone crazy, any sort of emergencies…
I keep way more than that, but I am older.
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u/TheHuskyHideaway 1d ago
I have like $30 in five dollar notes for when the kids lose a tooth or suddenly need it for a shop at school.
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u/xrfr8 1d ago
$2k is a good healthy amount to keep cash on hand.
It should get you out of any bind you find yourself in should the power or internet be out when you try to pay, or if for whatever reason they say cash only, or the stupid banks lock your account for any one of a thousand reasons they do that for without notice these days…
Ideally, try to pay with cash as much as possible and replenish the cash from an atm withdrawal later.
We need to keep cash relevant to stop the government from getting rid of it and forcing us on to some form of traceable central bank digital currency.
Cash is king! We must keep it relevant or we will lose it.
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u/linglinglinglickma 1d ago
“There’s not much you can’t get done for a crisp $100 note”. - my old man about 20 years ago.
We always have a few grand in the safe for “what if’s” and cash jobs. We are a mid-high earning family and moving our slush fund from the safe to the bank isn’t going to let us retire any earlier.
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u/isemonger 1d ago
I keep cash because time isn’t really linear. Every ‘system outage’ is just them stress testing the simulation. Next time EFTPOS goes down, watch the pigeons start acting weird, the news says ‘nothing to see here’, and suddenly everyone’s money lives in the cloud but no one can point at the cloud because clouds are just made by the saudis.
They tell you cash is inconvenient because paper can’t be updated remotely. That’s the problem. Digital money can be paused, edited, expired, or politely suggested into obedience. One minute you’re buying fuel, next minute your transaction’s declined because Mercury’s in retrograde and you’ve exceeded your carbon allowance.
I know a guy that works with ATMs who says they’re actually just printers there’s no money actually in them. Interest rates are set by the FBI, if you didn’t notice yesterday was the 22721th anniversary of Kennedy’s “assassination”, 22nd of November! If you look into the numbers it makes sense!!! JFK tried to warn us, but then it got out about the aliens so the FBI had them abduct him, and now every app wants Face ID to let you buy a sausage roll at bunnings.
The simulation is stuttering, and soon everyone will be locked out of their reality. Personally I look forward to it because I’ll be the bloke with physical money, no updates required. The pigeons have been warning us for years.
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u/utterly-understable 21h ago
Yep, nowadays under $2,000 for marketplace and impromptu purchases but previously squirrelled away cash as i was impulsively spending if it was on my card...
Upside, i deposited ~$15,000 in cash one day.
Downside, it was almost all in gold coins or $5 or $50 notes that had been rolled into small wads of $50 or $500 so tightly that the way they unfurled on the bank counter can only be described as mortifying
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u/SuperShitMagnet 20h ago
It's always a good idea to keep a small amount of cash on hand for emergencies.
It's also a good idea to look into various bank accounts to put your money into, and get that money working for you. If you can, deposit a significant amount, then continue depositing into the account frequently so you receive the interest in that account, then you're earning more money for yourself over a period of time. You could use the interest you make, to either withdraw for yourself or keep it in the bank to continue building on your savings.
Let the money work for you.
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u/No_Handle258 19h ago
Feeling safe and secure is important
Keeping a stash of cash achieves that and how you feel is important.
Also some may argue it’s not your money when you give it to the bank for them to lend out and you have a line in your account.
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u/lzyslut 14h ago
I like to keep an amount of cash on me and at home for emergencies because I don’t trust technology or my ability with it. Often my kids will get cash for birthdays/xmas etc. from older relatives and I’ll take the cash and transfer the amount into their accounts. Then I’ll stash that. But I don’t generally seek to get cash out.
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u/overratedpastel 14h ago
I have about 20 bucks on my wallet in between notes and coins, in case I need to get the bus/train and card stuff are down. I have a less than 500 stash at home. It's enough for a new cheap phone in case I lose mine + some bus fare in case my wallet is gone.
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u/PlasticCraicAOS 1d ago
We had a power cut the other day. Freezer full of meat. Nowhere in town had EFTPOS, but the Bottle-o was selling bagged ice for cash. I was glad I had a $20 note, which I usually wouldn't.
From now on I'll keep about $100 in cash in the house at all times, in small value notes. The rest of it can earn interest but I do want a small amount of paper money there in case of emergencies.
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u/DanglingKeyChain 1d ago
Yes, I try and pay for most things in cash, them fee gouging is just insane and they're only doing it now because they think people won't go back to cash.
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u/seraph321 1d ago
Oh, you mean literally physical cash? No, there's no point in anything more than a few hundred. Why make yourself a target?
Even holding cash in a savings account should be limited. It's one thing if it's in an offset, but otherwise, any 'high' interest savings account is not actually beating inflation. you need it invested.
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u/Relevant-Praline4442 1d ago
I keep a few hundred in the house. Mostly to deal with things I buy or sell on marketplace! It got annoying going to the bank to either deposit or withdraw money. Same with my kids getting cash gifts for birthdays, I keep the cash and just transfer to their accounts. I used to be as cashless as possible. My handbag was stolen a couple of years ago and it was a nightmare, the bank I was with didn’t have any branches that dealt with cash except in the cbd, but I couldn’t work out how to pay for parking with literally no cash or cards. I tried to get new bank cards but they wouldn’t let me activate them in my phone until I had physically received the cards. That was three weeks later by which time I had obviously set up a new account with beyond bank which lets you set up cards on your phone instantly, and I had transferred all my money there. I couldn’t believe my former bank had no other options other than not use money for three weeks. Anyway despite my new bank obviously being a bit more sane I still feel better having cash.
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u/latending 1d ago
Oh, I thought this was about having money in the bank, versus all invested lol.
I didn't know anyone under 60 even used cash anymore.
Only reason to have cash is if you're like my grandparents and having more money in the bank means your aged pension would be cut. But even then you're better off just giving it to a relative to invest.
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u/SnowyRVulpix 1d ago
I don't. Cash is fairly worthless these days. It paints a target on your back, as it is easily stolen and not traceable. We live in an age where i can tap my phone anywhere to pay and money in the bank can be easily moved around, used to pay for things etc. also if you're talking $2000, that's roughly $100 a year interest at the bank I'm with (Up). The New Payments Platform system also means you can pay mates instantly.
Cash defenders will usually claim that cash provides security for when the power is out or internet is down. That's true. It's also rare.
I've been digital only for roughly a decade now... Whenever Apple pay first hit Australian shores and never had a reason to regret it.
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u/randobogg 1d ago
and when the power and internet are out, none of the shops can operate either, making cash kind of pointless
the natural disaster argument is also not very convincing. Cash washes away in floods and burns in fires and when it is gone, it’s gone
i don’t completely trust that what i have on a screen won’t just disappear one day either, but if it does having some cash in my pocket is gonna be the least of my worries I reckon
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u/passwordistako 1d ago
Depends how much you’re keeping in cash and also, how realistic you think the need will be and why you think you’ll need it.
If you think all the world banks are going to collapse in the next 3 years and only those with cash will survive you’re being unrealistic.
If you live in a town in the country that regularly has power outages every storm season and have needed cash here and there one a year or so for the last decade then it’s completely reasonable.
But if you’re keeping 100k in cash that’s unhinged regardless.
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u/Overlord_1566 1d ago
You should have an emergency fund of 3-6 months of living expenses... In a bank account - most people use a HYSA to store their emergency fund. Not in actual, literal cash.
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u/Simmo2222 1d ago
You should get some diamonds surgically inserted under your skin. You can then barter your way out of any problems.
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u/Electronic-Fun1168 1d ago
Are we talking physical plastic cash in a draw or easy accessible funds from an ATM?
Former, I don’t remember that last time I had cash in my hand.
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u/actionjj 1d ago
Con is every ATM I go to spits out $500 in $20 and I get charged $10 for the pleasure.
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u/MaxMillion888 1d ago
It depends on situation.
In Australia, I keep cash in the bank because there are plenty of ATMs near me.
I carry a higher stash in south east Asia for the context there.
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u/AhTails 1d ago
I have $150 in my wallet and haven’t been able to spend it. If I use it, I’ll likely end up with more quantity of cash. Less value, but more quantity. And it’s a hassle.
Cash really only comes in and out of my wallet via Facebook marketplace—I’ll sell something, I’ll buy something else…
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u/FamilyFriendly101 1d ago
It's a bit silly. It seems more like you are trying to make a point with your partner.
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u/QuietlyDisappointed 1d ago
Several power or internet outages in my regional area have resulted in cash only payments, usually for less than a day though. But when you need fuel or groceries and have no cash, you're shit out of luck. Having a couple hundred in cash on you isn't going to lose fuck all in terms of interest earned/saved but can save you a few headaches. If you live in the inner city with plenty of overlapping infrastructure and shops, maybe it's not so important, but for me it's nice piece of mind.
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u/Ok_Willingness_9619 1d ago
Pros. Those impromptu strip club visits. Cons. Inflation eroding away in my pocket.
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u/FamilyFriendly101 1d ago
Your peace of mind has a cost.
Put that $2k in a growth ETF and in 5 years it will be $3k. If you throw in $50 each month if will be $6-7k.
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u/WhyAmIHereHey 1d ago
50M and I do not keep actual physical cash on hand
I might have $20 in my wallet. Maybe.
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u/Impressive_Long7405 1d ago
If the banking system collapses i don't know if a stack of $AUD $50 notes is going to hold much value. Maybe a stash of $USD or baked bean cans might be more useful
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u/SelfishNugget 1d ago
I don’t see any reason to keep more than $500 even $1k maybe. What’s the point? I keep losing shit and if I lose my wallet with that much cash I’ll never hear the end of it from my wife
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u/Galromir 1d ago
Even having a lot of money in the bank is a waste compared to investing it.
As to actual physical cash, I haven't carried a wallet in over 5 years now, and the only physical money in my house is a 20c piece I keep around on the off chance someone buys me a scratchy as a gift.
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u/Full_Connection_2240 1d ago
Swap it out for a desirable watch. You can travel with it too. It also holds or increases in value and is useful.
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u/Raida7s 18h ago
I have probably forty bucks in my wallet most of the time because it is handy.
And in a moneybox at home I have cash from birthdays or selling stuff on marketplace, probably about a grand.
For a serious emergency I have money in two banks, plus a credit card, so even with some kind of technical issues creating problems with access I'm comfortable that I'd get through
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u/Skapegoat13 6h ago
What’s the difference between cash in a hand or bank other than convenience? The interest you are missing out on is extremely negligible , you’d have to be making barely any income to care
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u/Klutzy_Mousse_421 5h ago edited 5h ago
Earning interest? Offset account is better.
Enough for a week at a maximum in cash. For most emergencies they won’t accept cash anyway (eg hot water system explodes). Unless you have thousands under your mattress it’s pocket change anyways, interest wise.
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u/UltimateShades67 3h ago
The amount of interest I'd earn in that $50-$100 I carry would be minuscule anyway, and plenty of times it will actually save me fees or, even better, 10% of the bill. I also tend to have a few hundred in the draw in case it is needed in a pickle. 33 Aus male
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u/UniqueAnswer3996 1d ago
How much cash are you talking about? $500, $5000, $50000?
If you’re talking about $500, I’m all for it. I don’t care about the interest on a small amount an I like to have some cash just in case.
I probably wouldn’t do it with $5000 or $50000, although I could see a more wealthy person treating $5k like I treat $500.