What are risks of relying solely on cash for survival?

Limited Access to Financial Services

When you rely solely on cash, you’ll be unable to use credit or debit cards to make purchases online, pay bills, or access funds from ATMs. This can lead to severe financial difficulties, especially if you’re unable to access cash due to a power outage, natural disaster, or bank closure. As a result, it’s essential to maintain a balance between cash and digital forms of payment.

Barriers to Emergency Funding

In an emergency situation, cash may not be readily available or accessible. For example, in a natural disaster, ATMs may be out of order, and banks may be closed. Additionally, if you’re unable to access a physical location to withdraw cash, you may be left without a means to purchase essential items. To mitigate this risk, consider maintaining an emergency fund with a combination of cash, credit cards, and digital payment methods.

Over-reliance on Physical Currency

Relying solely on cash can create a false sense of security, leading to an over-reliance on physical currency. This can make it difficult to adapt to changing circumstances, such as a power outage or digital payment system failure. As a prepper, it’s essential to maintain a flexible financial strategy that includes a mix of cash, credit, and digital payment methods. Aim to maintain at least 3-6 months’ worth of essential expenses in a easily accessible savings account or emergency fund.