Tuesday, November 13, 2007

Cash under the Mattress

I just collected some rent money from a rental that I own and was paid in cash. I currently don't have any cash stashed away in a safe place in my house and I've read that I probably should just in case I'm in need following a major disaster. Now, I don't know what kind of disaster I might experience in Delaware, but I'm considering this option. Obviously the downside to this is the losing value of the dollar.

If I keep say $500 in a safe, I will be out $276.48 over the course of 10 years. In other words, if I took that money and put it in a high yield money market account earning 4.5% interest, I'd have $776.48 in 10 years. So, my debate is whether the comfort of knowing that I have cash on hand is worth the loss. I'm thinking that it is as I've always been the type to prepare for the worst. That being said, I'm putting the $500 in my safe. Anyone else doing the same thing?

1 comment:

Nancy said...

I think you should put your money in the bank. I mean, you'll always have a few bucks on you, but I don't see you ever needing $500 bucks. Save your money!