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Holding some cash?

PostPosted: Mon Jan 19, 2015 9:43 am
by Pixel8r
I am wondering the amount of cash people are holding in preparation for the coming next leg of this crisis. I am thinking of withdrawing some physical cash to have something outside the banking system and am wondering what level I should do it to.

It could well be that we see credit/debit cards stop working and the cash machines run dry as the bond crisis develops, so having some cash to hand is going to be a good thing.

Re: Holding some cash?

PostPosted: Mon Jan 19, 2015 2:06 pm
by Acton Boy
I was discussing this just yesterday with my father. Bank bail-ins might well happen and even though you would supposedly be protected for 85k how long would it take to get access to all or even any of your funds. Weeks......months ? In this scenario it's easy to see rules imposed about how much you could withdraw/spend per day on credit and debit cards. Cash machines, would they even be reloaded ?
How would any business operate without the customers being able to pay ?
You go down to Tesco and want to buy bread eggs and milk, or the petrol station for some fuel and offer them an IOU, can't see that being accepted.
Looking at Cyprus and how people coped might be the best route to helping to see what's best to do.

Re: Holding some cash?

PostPosted: Mon Jan 19, 2015 4:29 pm
by Pixel8r
My thoughts exactly AB, think I am going to start withdrawing my daily cash allowance from the cash points and stashing it. Just trying to work out how much cash to hide, currently thinking £10k should be ok.

Re: Holding some cash?

PostPosted: Mon Jan 19, 2015 7:22 pm
by headmelter
I've always kept a certain amount of cash 'handy'..... & will increase it through this year..... Just in case.... If you're going to panic, Panic first... :whistle:

Re: Holding some cash?

PostPosted: Mon Jan 19, 2015 9:20 pm
by Pixel8r
Acton Boy » Mon Jan 19, 2015 2:06 pm wrote:I was discussing this just yesterday with my father. Bank bail-ins might well happen and even though you would supposedly be protected for 85k how long would it take to get access to all or even any of your funds. Weeks......months ? In this scenario it's easy to see rules imposed about how much you could withdraw/spend per day on credit and debit cards. Cash machines, would they even be reloaded ?
How would any business operate without the customers being able to pay ?
You go down to Tesco and want to buy bread eggs and milk, or the petrol station for some fuel and offer them an IOU, can't see that being accepted.
Looking at Cyprus and how people coped might be the best route to helping to see what's best to do.

Having a stack of sovereigns would help I'm sure, but think it is best to have some cash handy as well. I kind of think when things go wrong next time we won't be doing our shopping in Tesco as the shelves will be bare and it will be shut. The UK shops work on a just in time system, with deliveries being made daily, won't take long for the system to completely break should the banks start closing again. I plan on building up a longterm emergency food supply over the summer, as I am thinking things are going to get very nasty at the end of Q3.

Re: Holding some cash?

PostPosted: Tue Jan 20, 2015 5:06 pm
by Does Commute Abit
6 months of salary as a cash reserve has always been my minimum 'comfort zone'.

Makes sleeping at night a lot easier for me, and removes financial 'panic decisions', which in itself is valuable - i.e. the luxury of taking time and doing due diligence before an investment decision.

Re: Holding some cash?

PostPosted: Tue Jan 20, 2015 5:50 pm
by d2thdr
Pixel8r » Mon Jan 19, 2015 9:20 pm wrote:Having a stack of sovereigns would help I'm sure, but think it is best to have some cash handy as well.


Why use Gold now? I have always kept 3k in cash as emergency. I intend to up it to 25k within the next 6 months. I would certainly follow your protocol of using daily cash withdrawl allowance. If you go to the bank, they ask too many questions.