In fresh months, central banks in any European countries, specified as Sweden and the Netherlands, have called on citizens to store a certain amount of cash in their homes. These recommendations aim to prepare the public for possible crisis situations, specified as failure of banking systems or cyberattacks, which may prevent access to funds in bank accounts.
Why do banks urge keeping cash at home?
In the era of digitisation and the widespread usage of non-cash payments, banking systems are becoming increasingly vulnerable, specified as:
- Cyberattacks: Malignant actions that could paralyze financial infrastructure, preventing access to funds.
- Technical failure: Technological infrastructure problems may lead to temporary deficiency of access to banking services.
In the face of specified threats, having cash at home provides a safety to cover basic expenses in emergency situations.
How much cash is worth at home for a “black hour”?
Financial experts urge that the sum of cash stored at home corresponds to a fewer days or weeks of basic expenditure. In practice, this means amounts in the order of:
- PLN 500-1000: Allows to cover basic expenses, specified as food or fuel, for respective days.
- PLN 3000-5000: Allows to operate for respective weeks in case of prolonged problems with access to banking systems.
It is worth adjusting these amounts to individual needs and lifestyles, taking into account monthly maintenance expenses.
How to safely store cash at home?
Keeping cash at home involves a hazard of theft or loss. To minimize these threats, it is worth:
- Invest in a safe: Safe place to store valuable items and cash.
- Avoid the apparent places: Do not store cash in easy accessible or typical places specified as drawers or under a mattress.
- Inform only trusted persons: Only trustworthy people should know about the cash retention site.
Alternative methods of financial collateral
In addition to keeping cash at home, it is worth considering another forms of financial security:
- Accounts in different banks: Diversification of funds in accounts in different financial institutions may reduce the hazard of losing access to all funds simultaneously.
- Investments in precious metals: Gold or silver can be an alternate to cash in crisis situations.
- Holding of abroad currency: Keeping a certain amount of cash in unchangeable abroad currencies, specified as the Euro or the US Dollar, can be an additional security.
The call of European banks to store cash at home is due to the desire to supply citizens with funds to cover basic expenses in crisis situations. It is worth adjusting the amount of cash stored to individual needs, while keeping in head the safe retention and considering alternate methods of financial security.
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Banks in Europe have recommended paying cash. How much money do you have for a rainy day?
