Cash Is King in an Emergency


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Gold coins

Best emergency currency?

Surviving after a serious, wide-spread disaster

We’re not talking “emergency cash fund” here, the 6 months’ worth of savings we’re all supposed to have to carry us through losing our job.

Here, we’re talking about getting up after the storm has hit, shaking ourselves off, and taking stock of how we’re going to get through the next few days or weeks.

In most emergency situations like this, you’ll be at home – or you’ll get there after some effort.

Will I need cash if I’m sheltering in place at home?

If your stock of emergency supplies is complete, you won’t need much cash!

  • You’ll have food and water, even if there’s no easy way to heat it.
  • You’ll have lights, and blankets, and activities to keep you busy if not exactly entertained.
  • Your battery-operated radio will keep you up with the news.

On the other hand, if you’re like half the population, your food and water supplies will be GONE within just a day or so. You’ll join the hordes of people who realize they have already run low or run completely out of . . .

  • Batteries
  • Bread
  • Butter
  • Coffee
  • Milk
  • Eggs
  • Pet food
  • Toilet paper
  • Tampons
  • Diapers
  • Baby Formula
  • ! ! !

Even more upsetting will be running out of prescription pills – the kind with the label: “Don’t stop taking this medicine.”

If you find yourself in this situation, you’re going to try to find a store to replenish your supplies. And to do that, you’ll need cash.

Think about it.  When the electricity is out your credit cards are going to be pretty much useless.  Stores – including your pharmacy or doctor’s office — may not even be open if they don’t have lights, air conditioning, etc. If they are open, they’ll only be able to deal in cash. (Maybe if you’re a particularly good customer they’ll accept your IOU.)

Moreover, to GET to a store that does have supplies, you’ll need gas. In an emergency gas pumps won’t work, so stations will be shut down until they can bring in a generator. Even then, their credit card systems won’t be operating.

Once again, cash will be the likely medium of exchange . . . and you may encounter inflated prices as business owners assess the realities of the situation.

If you’re stuck at home for a while, you may also want to pay people to help you repair damages, clear roads, etc. For sure, these neighbors or contractors won’t be accepting credit cards.

(In a big emergency, people may resort to bartering for supplies and services. The best items for bartering seem to be alcohol, commodities such as flour, rice, coffee, etc., and ammunition.)

What if I have to evacuate?

Escaping impending disaster or a disaster that’s already hit means . . . getting on the road in your car.

This puts us back to the need for gasoline.

If you’re aware of what’s happening, and you’re prepared for immediate action, you may get out ahead of the other people hitting the road.  That might put you first in line at a gas station that still has power and gasoline, and where your credit card will still work.

In the crush, however, you may find yourself competing for gas, for a motel room, even for a place to camp or park – for a week or longer! Again, you’re back to paying for these necessities, and maybe with potential bribes to get you a preferred place in line.

So how much cash do I need?

Obviously, the better prepared you are at home, the less money you need if you’re staying home. And the types of emergencies you might expect (power outage, ice storm, earthquake) will have an impact on the preparations you will have made.

On the other hand, you may live in an area where the likelihood of evacuation is high. (For example, if you live along the coasts where hurricanes threaten, where a tsunami might hit, or where flooding is common.) If so, your evacuation preparations need to be more extensive.

And, of course, ANY of us could be asked to evacuate due to a fire, explosion or other unexpected emergency.

So, the better prepared you are to evacuate QUICKLY (with supplies, maps to help you find alternative routes, etc.), the less money you need, too.

In every case, it seems as though enough to keep you fed and sheltered for a week or so would be a good idea. This could mean at least $500 and probably twice that.

What denominations should I have, and how should I carry them?

When things get frantic, people accepting money are not likely to want to make change. So, having smaller denomination bills is probably best — $5, $10, $20.

You can also assume some people will be ready to take advantage of the situation by demanding your money – or taking it. So, don’t keep it all in one place. Put some in a wallet, some in a pocket, some in the dirty clothes bag. If someone tries to rob you, they may be satisfied when they see that your wallet/pocket is empty and it looks as though you have given them all you have.

If you’re sheltering in place, follow the same suggestions. Stash your money in a variety of places in the house. Avoid the bedroom, night stands or jewelry boxes – places where thieves look first. Take some time to create effective hiding places – just don’t forget where they are!

Hiding money or valuables in plain sight

The best way to hide money in your home is in ordinary places that a casual observer wouldn’t even notice but that aren’t hard for you to get into. Some examples:

If you’re a handy-person,

  • Convert a section of your wall (between the studs) into a storage cabinet. If you have paneling, a removable section won’t show.
  • Set a fake vent into the floor or the wall. Use the space behind for storage. (The space below cabinets is particularly useful.)

If you’re not handy, or are in a hurry,

  • Put a hollowed out book right there on your shelf with the rest of the books. Some “secret storage books” are really a simple metal safe, with keys (probably not fireproof). If you intend to put a weapon in the book, be sure to get a book that is big enough. The image shows an example that would fit nicely in our library. It costs around $12. Click the image for details from Amazon:

  • Buy a camouflaged container, like a fake Clorox bottle or a can of vegetables whose bottom comes off. Here’s a picture of a fake WD-40 can! (around $17). I have several cans of WD-40 around the house so this would be totally unremarkable!)  Again, click the image for more details.

 

Children and money

Obviously, giving children money to carry can be dangerous. Be sure they understand how much they have and how to protect it. Small children who normally manage their own allowance may become vulnerable targets in a widespread emergency.

What about precious metals?

We’ve all heard the investment world talk about the value of precious metals in times of uncertainly.

As an investment, gold and silver can make sense as part of a portfolio. However, as emergency currency, they may not be so effective. Consider:

Who would accept an ounce of gold in return for supplies? Would they be able to make change? How would they (or you!) even establish its value? (Quick quiz. What’s an ounce of gold worth today?  See below for the answer!)

What about a gold coin with the stated value of $1, like in the image at the top of this article? Here, the answer is probably a lot more positive. In fact, some people might prefer the metal to paper. (These coins might also be able to be used in a dispensing machine . . . if you come across one!)

Again, your preparations depend on your own circumstances. But, as always, you want to put the thought into the preparations well before the disaster hits!

Until next time,

Virginia
Your Emergency Plan Guide Team

P.S. The value of an ounce of gold today, July 14, 2017, is $2,012.  Care to make change for that?

 

 

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