by JQ Adams

Created on: February 07, 2009

With the spotlight on numerous hurricanes in the last few weeks and the recent anniversary of the terrorist attacks, it's a good time to be reminded of the simple things in life that may sometimes be overshadowed by the expansion of technology.

Those who live in flood-tornado-hurricane-wildfire prone areas of the nation may be a bit more inclined to prepare emergency kits and keep them updated every couple of months. Those who live in potential emergency zones have likely witnessed first-hand the need to have such a kit. People who live outside such areas may not consider the possibilities and are caught completely off-guard when an emergency occurs. House fires, for example, can strike anyone at any time. Many times people are left with only the clothing they escaped with because they were not able to think things through.

Families need to always practice an emergency plan and a kit can be prepared and stored somewhere convenient and easily accessible. Depending on the emergency and the family, a kit can contain many different things but the one MUST is cash. This stash of cash essentially is different from the big emergency fund you have in the bank collecting interest. This type of fund means having actual cash in a sealable bag or fire safe emergency kits, next to the flashlights and bottled water.

People fail to consider the domino effects of a bad storm, a fire, or other disaster. If you have to leave your home and travel farther away, you may get by with a credit or debt card. But what happens if you remain local and there is no power for days? The chances of you being able to use a credit card are slim to none. None of the machines will work. None of the ATM's will give you access to your cash. Banks will likely be closed up. Without a bit of cash on hand, you can quickly find yourself in heap of trouble.

When adding cash to an emergency kit, you need to consider a few things.

How Much Moolah

First of all, it must be decided how much money you can afford to hold on to and not ever spend. Tucking a couple of bucks you find in the dryer into the emergency kit each week is not a bad idea but overall a set amount should be determined for emergencies. It can be a portion of cash you withdrawn from your interest-collecting emergency fund but it has to be on hand.

Length of Displacement

Consider the longest amount of time you might be without power or water or away from home. You want to provide food, shelter, clothing and other necessities for your family on a daily basis. How much money you put away should be determined by the size of your family and other individual necessities.

Safety First

Keeping cash in the house that is easily accessible may also make people feel uneasy. Do not announce to people outside of the immediate family that there is any amount of cash in the house. Use a fireproof box to keep emergency supplies in case fire is the emergency.

Remember to keep supplies fresh and updated in your emergency kit and account for inflation when it comes to your money count. If you prepared a kit two years ago and set aside cash counting on gas prices back then - you may not get too far with today's prices.

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