2 Key Reasons To Save Money Outside Of The Bank

When really good friends talk to each other, they tend to talk about anything and everything. One such subject they may broach is money.  Here's an example of one conversation between two good friends:   The two friends were hanging out when one asked the other how much money did they keep in their home. The other person, not concerned about whether or not it was a personal question, told his friend that he had six figures on him. His friend was a flabbergasted, thinking that was way too much. 

However, the six-figure home friend asked his friend how much interest was he earning from the bank.    Here’s what you need to understand: you earn nearly nothing from the bank for interest, and you earn nothing when the money is not in the bank. There’s no reason not to have money outside your bank. The only thing you’re doing is spreading out where the money is being held.    

Withdrawing Large Sums Could Be Difficult   

Plus, when you need a plethora amount of money from the bank, it can be a difficult thing to do. And, that’s true. When’s the last time you were told you couldn’t withdraw a lot of money out of your bank at one time?   In fact, some banks will suggest you give them several days’ notice if you need to withdraw a large sum of money like $5,000. It’s hard to fathom that your local bank can’t easily come up with $5,000 or $10,000 – even if it’s a small or large bank. And, you may experience this anytime you need to come up with a lot of money at one time.    Of course, you have to wonder if you’re the only person who needs to attain a large amount of money at one time. If you’re not, will the bank even give you all the money you need?   

Why Should You Hold Onto Your Money   

Most folks don’t think about keeping a large sum of money in their hands, except perhaps when it was 2008. But, here are two key reasons why it’s good to keep money out of your bank.   · You don’t earn interest in or out of the bank. Why not have some of the money with you? · Should banks close for a few days and you don’t have any cash, you’re broke. What do you do then?   Don’t think that could happen? Well…   It happened not too long ago in Greece. The banks were open one day, and the next day they close for nearly three weeks.   And, while it's not likely the U.S. will ever experience a situation like Greece, but never say never. The reality is that there is no real good reason not to have some money outside your banks. Simply put: it's important you have some cash on hand. Choose a number you feel is good and then add a zero to that.