Are you the type of person who keeps large amounts of cash at home? You may think you have a good reason for doing so, but consider this: it is a big risk.
Here are several reasons why you may want to alter your approach in the future:
1. You are not earning interest on your money. Why keep cash under your mattress when you can put it in the back and earn interest? Sure, interest rates are low at the present time, but it is better to earn some money than none at all.
2. No protection. It is likely that an envelope full of cash won’t be covered by a renters or home insurance policy. For this reason, if somebody steals the money or it is lost due to a disaster, such as a fire, you are out of luck.
3. You could soon lose track of the money. This is particularly true if you like to hide the cash in different parts of your home. It is possible you could forget where you hid the cash. It is also possible that you could throw it out by mistake, or leave it behind in the event that you move.
There is nothing wrong with keeping some cash in your home. For example, many people like to have this on hand to pay for small emergencies or extracurricular activities. The big risk comes into play when you close your bank account and instead opt to keep all your money at home. If you have followed this financial strategy in the past, the three details above may be enough for you to change your mind in the future.