How much cash do you have on hand? According to the U.S. Federal Reserve, approximately $1.28 trillion dollars in cash are in circulation in the United States. Most of that is in Federal Reserve notes. One economist estimates that there’s enough cash in circulation for every American to have about $1,300.
Do you have that much cash on you?
I don’t. But people do. Money Stashers often have much more cash on hand, in fact. Which turns out to be a good thing for the latest book I’m writing. Why do people do this? My research revealed some fascinating tidbits you might like to know.
There are actually quite a few reasons people stash large amounts of money away.
- They don’t like the hassle of driving to the bank to use an ATM card.
- They worry they’ll need cash for some reason when the banks are not open.
- They don’t trust banks, especially in times of recession.
- To avoid paying taxes.
- Some people want to be approved for Medicaid, but own too much to qualify. So they squirrel it away, and then become approved.
- To hide assets during a divorce.
I also came across some pretty creative places people hide their money at home:
- In a tampon box. Smart. Not many men would be brave enough to look there!
- In the attic. Better wrap it up well to protect from creatures of the night!
- In a cookie jar. Hide it from the kids!
- I don’t want to give anything away, but there’s a hiding spot in my Hunt for Jack Reacher novel Don’t Know Jack!
As fun as it is to think of creative hiding places, there are plenty of reasons NOT to keep money tucked away at home.
- It’s not earning interest.
- If you keep it at a bank or credit union in the U.S., it can be protected by the FDIC.
- What if there’s a fire or flood or robbery? Poof! You’ve gone from riches to rags!
- People make mistakes. What if you accidentally lose it or throw it out? What if you forgot it was stashed in a mattress that you got rid of??
In my book, having the cash on hand is both a blessing and a curse. Why? Well, you’ll have to read it to find out. But in the meantime, do you know any Money Stashers? Why do they do it?