In today’s digital world, cash has become less important for many people. Credit cards and mobile payment applications have replaced physical money in many situations. But what happens in the event of a catastrophic event in which electronic payment options fail? In such cases, having an emergency stash of cash at home is a sensible measure.
Electronic payment systems and their risks
Electronic payment systems are diverse and omnipresent in our society. These include card payments, online banking, mobile payment applications and digital wallets. They allow us to pay seamlessly and without physical money. However, these systems are all dependent on technology and may not function in certain scenarios, such as an extended power outage, a natural disaster, or other crisis situations.
Such a failure can be caused by a variety of factors. On the one hand, technical problems could arise. These could occur at the infrastructure level (such as servers or network problems) or at the individual device level (such as card reader failures).
Another potential factor could be a widespread power outage. Without electricity, most payment systems would not work. In addition, natural disasters such as earthquakes or floods could also damage the infrastructure and thus limit access to electronic payment options.
Cyberattacks pose another risk. Cybercriminals could attempt to attack systems to disrupt financial transactions or steal sensitive information. If the attack is successful, all or part of the systems could fail until the problem is resolved.
In such cases, cash offers an important alternative. It is a physical means of payment that works independently of technological systems. Having enough cash at home can cover basic needs such as groceries and medications even when electronic payment options are not available.
Live self-sufficiently for two weeks
Disaster protection organizations and authorities such as the Federal Office for Civil Protection and Disaster Relief (BBK) in Germany recommend keeping an emergency supply of cash at home. The BBK’s recommendation is that every person should be able to live independently for at least two weeks. In addition to food and water, this also includes cash.
The exact amount varies depending on individual living circumstances and needs. However, it is generally recommended to have enough money at home for food, medication and other necessary expenses for two weeks. Considering the average expenses, this could be a sum of around 500 euros per person.
When calculating the amount required, unforeseen expenses should also be taken into account, as crisis situations often involve additional costs.
Safe storage
A common way to safely store your own cash is to use a small safe. Modern home safes offer various security features, including fireproof and waterproof features, digital locks and alarm functions. A safe can help protect cash not only from theft, but also from potential damage from fire or water damage.
On the other hand, a hidden compartment can be a suitable solution if there is no safe or the safe is too conspicuous for potential burglars. Unobtrusive options could include books on a bookshelf, a fake tin in a kitchen drawer, or even a well-hidden spot under the floor or behind a picture. However, it is important that the hiding place is well thought out and is not easily found by strangers.
Editorial team finanzen.net