How Much Cash Should I Have In My Wallet?

You are here because you wanted to know how much cash you should have in your wallet? So, in this article, you will find all the answers to your questions related to it. We are going to cover what you need to know about cash, why carrying cash with you is a good idea, or sometimes not so good.

Is it better to pay with credit or cash? How to decide how much cash you should have on you during the day to day and much more, read on.


– Add up all your essential costs to know exactly how much money you should have in your wallet.
– You will come to know about the rule of thumb that provides general guidelines to overcome a particular situation.
– Having periodic transfers to high-yield savings accounts, lowering costs, and increasing income will help you build your balance.

What would you do if it is your turn to pay the bill at the restaurant and suddenly your card gets declined? Well, you might live with the embarrassment or pull out some cash? It’s certainly convenient to pay for everything with your credit card. However, there are still times in life when you have to pay with paper currency.

When such situations arise, you must either be anxious about whether you have enough money on hand, or you sit back and relax, knowing what to do. For many of us, saving currency and credit cards has been a constant concern since we realize it when our wallets are stuffed with worthless items.Therefore, you never spend your money in the right place. 

So, let’s figure out this scenario that how much cash should you have in your wallet. So, stick to this article till the end, as we will give some tips and tricks to make things easier.

 How Much Money Should I Have In My Wallet?

How Much Cash Should I Have In My Wallet

It’s probably one of the initial finance tips your parents ever told you that always carry cash in your wallets. So It’s a good idea to keep at least a day’s worth of expenses in the form of money. You should carry a certain amount of cash with you, depending upon your spending habits. 

So, it depends upon your need for cash currency at the time of your shopping, travel, or anything else. If you still have any confusion about how much money you should have in your wallet? Then all you can do is make a to-do list and roughly estimate your desired items. 

This will help you to find your targeted item without spending extra money on different products. For suppose if you are at work, you may need to cash-only vending machines. So, in that case, you can bring only targeted costs in your wallet.

Whether it would be $100, $300, or more, keep in mind that cash can be handy for social events. So, whatever will be your reason, having enough money to get through the day can be helpful.

Why Should You Not Carry Less Than $50?

Because emergencies could happen with anyone at any time, it could indulge in significant problems if you carry less than 50 dollars or less. As in today’s world, where everything is growing more expensive day by day, how could we expect others to help us with such a considerable amount?

So if you are stuck outside in any situation, you must have enough money in your wallet to easily tackle that situation without any financial support as nobody will help if you don’t have a single penny in your pocket.

We know that one of the most crucial safety tips is to have cash on hand, but you never know what might happen. So be ready at all times. 

What Are Your Daily Cash Expenses? 

Keeping a record of your daily expenses suggests how much money you can have in your wallet, but it will also help you set your desired budget. So all you have to do is try to write about your daily expenses. 

However, the best way to record a cost is to write it first as soon as you spend the money whenever possible. Record all your daily cash expenses, from electricity bills to shopping bills. So once you started to create these lists, you will be able to set your wallet with the desired amount.

Why Is It A Good Idea To Carry Cash? 

Because you can purchase anything of your choice from local shops or stalls without any tension of credit cards accepted, to clarify why it is good to have cash, let’s imagine yourself in a situation. So assume yourself in a place where you urgently require money but didn’t find a nearby ATM that is connected to your bank’s system. 

Now, what would you do in this situation when you have no other option and things are getting really complicated? Well, at this point, you really realize the importance of cash. That’s why you can’t debate the value of money in this nearly digitalized era where you would have the option of a debit card. 

Is It Safe Carrying Cash Around?

The answer might be Yes or No. Well, it totally depends upon the situation and upon your choice. Like if you carry large sums of cash to increase your risk of becoming a victim of a robbery. Taking significant quantities of money comes with a lot of chances. 

As domestic workers carrying cash are an easy target for criminals. We’ve heard of many workers being attacked and robbed shortly after being paid in money or withdrawing cash from an ATM.

But on the other hand, if you would divide and hide your money to save yourself from any further risks. 

Although many of us still carry a large amount of cash without little or no fear. So one should make the right decision before going outside with a large amount of money in one wallet.

Is It Better To Pay With Cash Or Credit Card? 

How Much Cash Should I Have In My Wallet
Is it better to use credit card or cash?

Although both have their own importance in terms of time and situation, credit card is the better option for monthly bills and purchases. We recommend you to use the daily cash for daily expenditures to keep track of your expenses.

When opposed to carrying cash, credit cards are more convenient and secure. A credit card is a reliable and desired alternative to cash for in-person purchases and a required tool for online transactions as long as you can pay your bill in full. 

Thus Credit cards provide an enviable convenience and allow you to purchase more fabulous items—as long as you keep track of your spending and make sure to pay off your debt each month.

While buying with cash will most certainly save you money and prevent you from making impulse purchases, so it is easier to stick to a budget when you have money on hand.

So, in short, Credit cards are less reliable only in terms of if services are not available in are while having cash didn’t bind you with this situation.

How Much Cash Should I Have In My Wallet

Reasons Why You Should Carry Cash 

In this digital era where almost everyone uses credit cards, many people still rely heavily on paper currency for many reasons. So for your convenience, we have mentioned some of the reasons you should carry cash even though you have other options.

1.Bills Splitting

Dining out with friends or roommates and dividing the bill? While some restaurants may be able to print separate checks, it is often more convenient and fast to pay cash as a group. If you and a shopping companion want to share a purchase then it’s easy to do it with money. Likewise, if one person agrees to pay later, then one person may be left with the entire bill. 

2.Public Transportation

Credit or debit cards appear to be accepted almost everywhere these days. This is, for the most part, correct. However, still, at some places, cash is accepted. For suppose, If you are in a bus or van getting on your way to the home, suddenly you realized that you are running out of cash. 

As these transportation services only accept cash, so you have to operate your ATM. At the same time, the entire vehicle had to wait for you until you withdraw money from an ATM. At that moment, you realize that cards are useless sometimes.


When dining out, you may effortlessly add the tip to the bill and pay with your credit card. A card reader may not be available in other cases, such as tipping bartenders, valets, cleaning, tour guides, bellhops, or your pizza delivery guy. Thus cash is still king.

Waiters and waitresses may prefer cash tips to credit or debit tips because they can obtain their money right away rather than waiting for their salary at the end of the week. The firm may deduct the processing fees from the tip before adding it to the paycheck, leaving your diligent server with less money.

4.Easy Budgeting 

It’s easier to keep track of your expenditures when you pay with cash you’ve set aside for purchases. It’s also helps you to keep grounded in terms of how much money goes out and comes in weekly and monthly.

So these are the few reasons why paying with cash is a best choice than a credit card. There aren’t times or places where credit card is preferable, but you should be better aware of how you can pay off this debt within a certain amount of time.

7 Tips For Carrying A Large Amount Of Cash 

How Much Cash Should I Have In My Wallet

 If you are not satisfied with the credit card system while traveling worldwide, you should follow these ten tips to safely and securely carry your large amount of cash safely and securely:

  1. Don’t keep your purse too handy as anyone can quickly get access to your wallets /bags without letting you know. 
  2. If you are concerned about getting robbed while carrying a large amount of cash, you should keep a dummy wallet with you.
  3. Try to avoid carrying all of your cash in your purse, as it draws everyone’s attention.
  4. If possible, divide your cash in other bags, shoes, or anything rather than your purse.
  5. Wear those clothes that have been built with hidden pockets so that you can hide your extra money there.
  6. Don’t keep your wallet in checking bags, as it may have a chance to misplace it so that you would lose your money.
  7. Trim your wallet, remove all unnecessary cards or items, as the sizeable bulky wallet can quickly get the catcher’s eye on its targeted purse.

Rule Of Thumb For $100 And $300

recommend having between $100 and $300 in cash in your wallet, as well as a $1,000 or so in a house safe depending on your spending habits, a couple of hundred dollars may be plenty or insufficient to cover your daily needs as psychologist recommends carrying a 100 dollar in your wallet at all times. 

So you can save your money without realizing it. A study suggests that the amount be kept at or below $100 to be used as a budgeting tool.Having that much in your wallet offers you a psychological lift and makes you think twice about your spending. 

So basically, the rule of thumb provides you to set your basic rules for a specific purpose. Moreover, it will also help you to set your budget by following guidelines provided by professionals.


Summing it up, carrying cash is both an art and a science, and only you can figure out the best amount through trial and error. You willdominate the modern world after learning the optimal balance of cash, cards, and the required products. We hope that after reading this article, you will be able to clear all your confusion.

Hopefully, these tips will help you to solve your problem about how much cash you should carry in your wallet. If you still have confusion, feel free to ask.

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