by Kandiss Edwards
May 30, 2025
Determining the right amount of cash to keep on a daily basis is a conundrum for many.
As cash becomes more obsolete in today’s society, many have stopped keeping physical currency in their wallets. Still, in many instances, cash remains king. Emergency car repairs and service tips are made easy with cash.
However, determining the right amount of cash to keep on a daily basis is a conundrum for many. Many factors come into play, but sdhering to a budget is made easy when smaller personal expenses are covered with what’s in your wallet.
Recommended Cash Amounts
A recent round-up of financial experts gave their estimates for how much paper currency to carry. The amounts vary based on need.
Christopher Rand, a certified financial planner, keeps it simple: “Generally, $50 to $100,” he told CNBC.
Similarly, Melissa Caro, a CFP in New York, $60 to $80, depending on her plans. “If I know I’ll need it—say for tipping, parking, or certain small businesses—I’ll add a bit more to my wallet,” she said.
While Caro and Rand find value in keeping cash on hand, Tipiwa Walker told CNBC that physical currency is often a hindrance.
“Having large amounts of cash in your wallet makes you more susceptible to losing the funds,” Walker said. “Cash simply does not have the protections that credit cards do.”
Having cash just in case a digital payment is compromised—i.e., a digital wallet is glitching or a credit card is declined—is important. However, there are important considerations to make before deciding how much to remove from the ATM.
Factors to Consider
- Payment Preferences: Do you prefer to leave a digital trail when paying for gas, tips, car repairs, etc.?
- Emergency Preparedness: If your area is prone to difficult weather, you may want to carry more than less. Having physical money when a power grid is down is a lifesaver.
- Travel Habits: Many travelers are victims of pickpocketing and theft. If you are in an unknown place, keeping cash may save you in case you are a victim of credit card scams.
- How much can you afford to lose? Carrying excessive amounts of money is risky. There is no way to recoup lost funds. Cash does not have a payment dispute center. Only carry what you can comfortably use.
Ultimately, the amount of cash you carry should align with your daily needs, comfort level, and potential emergency scenarios. Regularly assessing and adjusting this amount ensures you’re prepared without carrying unnecessary risk.
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