How much emergency cash should you keep?

Video transcript

Your card fails. The ATM is down. How much emergency cash should you have? Start with the essential purchases your household would still need, not a random round number.

Count daily food, water, transport and care costs for your whole household. Allow for supplies already at home. Choose a planning period, then add one-off expenses and a buffer.

For example, thirty dollars a day for three days is ninety dollars. Add sixty in one-off costs and thirty as a buffer. That makes one hundred eighty dollars. This is an example, not a government recommendation.

Keep a useful mix of small bills. Build the reserve gradually, without missing essential bills or medication. Your payment backup is different from your longer-term emergency savings.

Cash cannot guarantee a purchase. Shops may be closed, fuel pumps may need power, and some services may require a card. Plan supplies and alternatives, too.

Protect your cash from theft, water and fire, while keeping it accessible. Use the free Ready and Resourceful cash calculator, print your plan, and review it when your needs change.