How Much Cash Should I Carry?

In today’s society where nearly all forms of payment have been converted to plastic, it is hard to convince people to carry cash. Mostly citing security concerns or convenience issues, people just aren’t into carrying cash these days. However, there are still several good reasons to carry cash, and occasions when only cash will do. For these scenarios, just how much cash should we have on hand?

Walking Around Money ($20)

I try to keep at least twenty dollars on my person at all times. Twenty dollars is enough to cover tips, or small purchases from a vendor who does not accept credit cards. A small amount of cash may also be needed for gas or food purchases in a pinch should your debit or credit cards decide to not work. After my “soggy hotdog” experience, I’ve made it a point to try and leave an extra $20 bill tucked away in the back of my wallet.

Travel Money ($250)

For regional travel, a couple hundred dollars seems like a prudent amount of cash to keep handy. While traveling there will be more opportunities to engage in cash-only transactions, such as cab fares, tips for hotel staff, and picking up the latest copy of Kiplinger’s Personal Finance from a magaine stand. I like to separate my travel “walking around money” from my total travel cash by leaving $100 or so tucked away in my suitcase, or similar hiding place and replenish as needed.

In the event my wallet (along with debt/credit cards) is lost or stolen, I am not completely without money for meals, gas, etc.

Cash Kept at Home ($500)

Along with a fully-funded emergency fund, and a smaller local emergency fund, it also makes sense to keep some cash around the house. Home safes and lock boxes are fairly inexpensive and can provide security for your cash and other valuables that you don’t want to leave in a safe deposit box. In the event of a disaster (natural, or otherwise) it would be good to have a few hundred dollars in cash at your disposal.

You never know when access to your money at the bank could become inaccessible, or roads impassible, so keep a small amount handy in the event of a large scale emergency.

Is Recession Preparing a New Breed of Survivalist?

Yahoo ran an interesting article this morning indicating a rise in the number of survivalist communities cropping up around the country. I have been wondering myself how much of the recent energy crisis is causing people to do things like stockpile food and water, grow their own vegetables, etc. Could it be that there are many people out there stockpiling and their increased buying has caused food prices to increase? It’s an interesting theory, but I believe increased food prices have more to do with rising fuel prices as cost-to-market costs have increased and grocers are simply passing those increases along to the consumer. A recent stroll through the camping section of Wal-Mart did give me pause – what kinds of things are prudent to have on hand in the event of a worldwide shortage of food and/or fuel?

Survivalist in Training

I’ve been interested in survival stories since I was a kid, which is funny considering I grew up in a city. Maybe that’s why the idea of living off the land appealed to me. My grandfather and I frequently took camping trips along the Blue Ridge Parkway and around the Smoky Mountains. Looking back, some of the best times we had were when we stayed at campgrounds without electricity hookups, because it forced us to use what we had to get by. My grandfather was well-prepared with a camp stove and lanterns (which ran off propane), and when the sun went to bed we usually did along with it. We played cards for entertainment, and in the absence of televisions, games, etc. we shared many great conversations.

Survivalist in the Neighborhood

I have a neighbor who recently converted his entire side yard into a vegetable garden. I don’t know his motivation, but I couldn’t help but wonder if he was a sort of “urban survivalist,” planning to grow his own food to live off in an emergency. Maybe he is simply hedging against higher food prices. Either way, he is growing an impressive amount of food. We recently upsized our square foot garden into an in-ground garden in our backyard. By no means could we live off the harvest at this point, but we may have a few veggies to supplement summer salads. Perhaps I need to follow my neighbor’s trend, and borrow his tiller!

Survival Gear

Having a few basic necessities on hand makes a lot of sense, not only in the face of recession, but as a practical homeowner who at times may face natural disasters, power outages, etc. Within this post, I’m going to start a list of items to have on hand in the event of an emergency – sort of a home emergency kit. Over time, the list will grow much larger as I remember new items, or as readers share their lists with me. We keep our home emergency kit in an old school backpack (the contents are stored in gallon-sized Ziploc bags to make them waterproof) and stored high in a closet. In the event of an emergency we could easily grab it and have all the smaller contents close by.

  1. Gallon of water per person, per day of required survival. A general rule I’ve read from others is to keep about three gallons of water on hand per person. Hopefully, in a small scale disaster water treatment facilities could make necessary repairs of diversions to get water back online within a few days.
  2. Water purification tablets. Pickup a few of these at a camping store. In the event you can’t generate heat and boil water these tablets may provide the only way to make drinking water safe.
  3. Can opener. I sort of chuckled as I wrote this, because we always hear jokes of people being stranded with canned goods and no can opener. Think of all the things in your pantry – how would you open them without a can opener? I guess you could resort to smashing them against a sharp object, but save yourself some time and effort by picking up an inexpensive, manual can opener.
  4. Weather radio. Just a couple weeks ago tornadoes ripped through the town just to our north, knocking out power, and taking several radio stations down. Without a battery-operated weather radio tuned to the NOAA emergency station you would have no way of knowing what was going on outside your home.
  5. Spare container of propane for gas grills. Grilling out is kind of a luxury now, but in the event of losing power for several days it may be the only way to heat food.
  6. Ramen noodles. A cheap way to store several days worth of carbs and necessary fats. Add a little water and you have a meal in a real crunch. Hey, if college kids can live off these things, you could in a pinch.
  7. Gatorade. In a hot summer I can go through gallons of Gatorade when working outdoors. In an emergency situation, Gatorade can be a great way to replenish salts and electrolytes robbed by dehydration.
  8. Waterproof matches. Along with a torch lighter or two, waterproof matches may be your best bet for lighting candles, fires or the grill mentioned above.
  9. Whistle. Whistles are great to carry along on hikes because they can make a lot of noise without wasting a lot of energy. They are also good to keep at home in case of a structural collapse as a way of communicating with rescuers.
  10. Swiss army knife. Many of these have multiple tools such as screw drivers, corkscrews and bottle opener, in addition to a variety of cutting tools.
  11. Flashlights. Every home should have a few flashlights and spare batteries.
  12. Gun and backup ammunition. Gun-control advocates won’t like this one, but I believe in our right to bear arms. Make them safe and out of reach of kids if you have them. In the event of a disaster you may be forced to defend your food and other supplies from those who failed to prepare wisely. It is a scary proposition, but unfortunately it is human nature – survival of the fittest.
  13. First aid kit. Every home should have a well-stocked first aid kit. Most of the larger retail stores sell pre-packaged first aid kits, but you may find you can stock your own cheaper. I like to add to ours occasionally by picking up trial-size items at Wal-Mart or Target. It’s nice to toss a small bottle of aspirin or acetaminophen in the kit without having to buy 100 tablets in larger packaging.
  14. Dust masks. I have a box of these on hand anyway to help fight allergies while mowing our lawn. They also offer protection from dust and debris in the event of a structural collapse. We all remember the images of 9/11 when the towers collapsed, spreading toxic dust hundreds of feet.
  15. Prescriptions. It’s a good idea to never let everyday prescription supplies run low. Those taking medicines such as insulin or blood pressure medication should always keep a fresh supply on hand in the event they are unable to venture out for refills.
  16. Hand sanitizer. Sanitizing wipes or squirt bottles are an effective way to clean hands before eating without using up precious drinking water. Again, keep out of the reach of children as sanitizers are toxic if ingested.
  17. Vitamins. Vitamins may help supplement important nutrients missing from an emergency food diet, such as iron and potassium. For purposes of an emergency kit I recommend a bottle of generic Sam’s Club vitamins or similar because a large quantity can be purchased dirt cheap. Look for vitamins that can be halved and given to children making it unnecessary to purchase separate bottles.
  18. Protein bars. Inexpensive way to store individually wrapped servings of protein.
  19. Antibiotic cream. To ward off infection to cuts and scrapes.
  20. Gallon Ziploc bags. We store the contents of our emergency kit in Ziploc bags, but we also store a few extras in case we need to separate things during an emergency, or to store opened food, etc.
  21. Duct tape. Can be used to seal off windows and doors in the event of a biological attack. (submitted by Gretchen)
  22. Surgical mask. Offers some protection against the spread of airborne biological agents. (submitted by Gretchen)
  23. Books to read, a deck of cards, a travel game, and note book and pen. All good ways to pass the time if forced to “wait it out.” (submitted by Greg)
  24. A wad of small bills, mostly ones and fives. Stores would soon run out of change and most vending machines only take small bills. (submitted by Greg)
  25. Waterproof copies of legal documents.  Keep copies of birth certificates and other personal papers in a Ziploc bag. (submitted by Jenni)
  26. Include a book about edible plants.  This is a great idea, and a topic I took great interest in when I first read the SAS Survival Handbook - in fact, I may just pick up a new copy of this excellent book and toss it in the pack. (submitted by lootsdw)
  27. Stockpile seeds for your garden. (submitted by lootsdw)
  28. Don’t forget pet food. I try to have an extra bag on hand for the dogs and when I’ve used up the current bag I rotate and go buy a new backup. Doggies need to eat too! (submitted by castocreations)

Be sure to rotate your food stockpile, water, vitamins and prescriptions so that they are fresh and effective. Most canned goods can easily be stored up to one year, and most dried goods may be consumed up to six months from their purchase date. If no expiration date is present on items, label the date you added them to the emergency kit with a marker so you’ll know when it is time to replace them. I’m not advocating you rush out and buy all these things today (unless you are ready to make a significant investment), simply add a few items from the list to your grocery budget over the next few weeks and begin to build your own family emergency kit.

Ask the Readers: What kinds of things are in your home emergency kits? I’ll add new items to the list and make this a group project.

If you liked this article, please consider subscribing to Frugal Dad for free via RSS feed or email delivery. Subscribers also receive my free eBook, The 7-Day Turnaround!

photo by: ktylerconk

Sunday Conversation #3 with Frugal Dad

cup-of-coffee.jpgWelcome to Sunday Conversation #3! If you would like to participate in next week’s Sunday Conversation, simply ask your question in the comments section of today’s post and I will respond next Sunday. Remember, any subject is on the table (but keep it family-friendly).

Luke, from Money and Fitness Blog asks, “I was going through the site the other day and I believe you actually have not been writing on the blog for all that long. My question basically is if you have any advice for someone like myself who is trying to spread the word of their site?”

Early on, I took advantage of free advertising mediums such as Entrecard, Yahoo Answers (answer questions on your subject matter and include a link to your site – don’t spam them or you’ll be booted), and a few others. To this day the only costs associated with running Frugal Dad have been my original template purchase ($5), logo creation ($9.99), and of course regular hosting fees. I have done zero paid advertising for Frugal Dad.

Another great way to spread the word of your site is to leave thoughtful comments on other blogs in your niche. Be sure to leave your website’s address in the URL section if given the opportunity, but it isn’t necessary to include your URL in the text of the comment. Most bloggers consider this spam and it isn’t exactly welcomed. Take some time to read the post before commenting and add value, or add some of your personal experience, to the article. “This was great-thanks!” doesn’t cut it. You should also consider a similar approach to engaging in forums related to your niche. Just include a link in your forum signature and jump into the conversation by adding value to the discussions.

Take your message offline. A mistake many bloggers make is they fail to mention their site in offline communications, and even emails. Early on, I made up some inexpensive business cards with my site name, URL, and a few short phrases describing the content. I drop these off at doctor’s offices, post them on bulletin boards, leave in tip trays at restaurants, and on set a few on top of gas pumps. I also include them in any paper bills I pay, and gave a few out to family and friends so they can pass them around as well. When sending email be sure to create a signature with your site URL and include a link to your subscription page or email subscription link.

Offer to write a guest post. Guest posts are a great way to share your content with other audiences. Most blog owners will accept guest posts, but be patient if you don’t see it up and running in a couple days. Many times bloggers bank several days worth of posts and schedule a few days in advance. Your guest post may do better sandwiched between related posts, or at the end of a series of posts, so sit tight.

Finally, use weekly roundups or a similar format to highlight other blog posts you enjoyed during the past week. Bloggers enjoy seeing their content discussed and highlighted on other blogs, and will frequently reciprocate with a link to your content down the line.

If you would like to get my thoughts on a topic of interest, simply post a comment to this article below and I’ll include your question in next week’s Sunday Conversation.

photo by OiMax

Weekly Roundup: Memorial Day Edition

iwo-jima-memorial.jpgIt has been a busy week and I didn’t get to the feed reader as often as I normally like. This roundup will be a little lighter than others, but luckily I did have some time to pluck a few gems out of the blogosphere. Enjoy!

Now, for the Roundup

Turn Your Wasted Money Into a Debt Reduction Plan offers a creative way to boost your debt snowball. (@My Dollar Plan)

Gifts that Matter Don’t Come From Wal-Mart is a timely reminder that it is gifts from the heart that mean the most. Keep this one in mind for Father’s Day, graduations, etc. that will be coming up over the next few weeks. (@The Simple Dollar)

What To Do With a Deadbeat Relative from Mrs. Micah shares a few approaches to try when dealing with a relative who refuses to pay back a loan. As I pointed out in the comments section this story illustrates why I don’t loan money to family members – I give it away if the situation calls for it, no string attached. (@Mrs. Micah)

American Idol Teaches Five Lessons on Being a Winner. I don’t personally like the show, but I completely agree with Jeff’s lessons on what it takes to be a winner. All I know is there were two guys in the finals with the same name, so congratulations David! (@My Super-Charged Life)

Frugal Living for Beginners. Sometimes it seems overwhelming to start a frugal lifestyle. Lynnae simplifies things in this great primer for frugality. (@Being Frugal)

How to Credit Card Companies Charge Interest on Your Balance? David shares yet another reason to get out of credit card debt – interest! (@My Two Dollars)

Now and Then: My Current Financial Situation Compared with a Year Ago looks a lot like my own financial situation a decade ago. I hope I can recreate the kind of success J.D. has had at eliminating his debts and building savings. (@Get Rich Slowly)

What’s the Worst Financial Thing that Could Happen? Most people think death is the worst possible scenario, but in terms of finances, a permanent, long-term disability can actually be worse. Take Ron’s advice and be sure you are covered. (@The Wisdom Journal)

Another weekly roundup in the books. Don’t forget to get those submissions in for tomorrow’s Sunday Conversation. Enjoy the Memorial Day weekend, and take time to remember those who gave the ultimate sacrifice for the freedoms we enjoy today.

image by spakattacks

10 Simple Ways to Save Money on Summertime Utilities

The following is a guest post contributed by Heather Johnson, who regularly writes on the topic of small business finance. She invites your questions and writing job opportunities at her personal email address: heatherjohnson2323 at gmail dot com.

Although they may not be your largest monthly expense, your utility bills can certainly make life tough — particularly in the summer months when we seem to use more water and blast the air conditioner. Since things are heating up right now, it is a good idea to prepare for rising costs. Below are 10 simple ways to save money every month on your utilities.

  1. Turn off the light as soon as you leave a room.
  2. If you will be away from the house for more than two hours, turn off the air conditioner.
  3. Turn off the water while you brush your teeth.
  4. Water your lawn at dusk or after dark, as the heat of the sun will evaporate the water.
  5. Use energy-saving, fluorescent light bulbs.
  6. Hand wash large, bulky dishes to save room in the dishwasher.
  7. Use cold water to wash your clothes. Cold-water detergent is now available in all major grocery stores.
  8. Don’t linger in the shower.
  9. Keep the thermostat at a reasonable level. Using ceiling fans can help the comfort level.
  10. Don’t use an automated sprinkler system. Instead, only water your lawn when it looks thirsty, preferably with a soaker hose.

While the tips above won’t make you a millionaire, they will help you save money on rising costs this summer. Much of this advice can be applied to your life year round. However, it is during the warmest months that most of us really start to resent the incoming utility bills.