With economic unknowns and increased tariffs affecting the way we plan financially, more Americans are taking a second look at their emergency savings approaches. According to financial experts, having at least $2,000 in cash stored at home can function as a crucial emergency buffer against the unexpected. They disagree on what that amount should be and by how much.
Matthew Saneholtz, a certified financial planner at Tobias Financial Advisors in Florida, recommends keeping between $500 to $1,000 readily available for unexpected issues. He drives home the need to maintain plenty of cash at hand, especially for those in sectors most likely to be laid off if cuts come. “If you are in an industry with layoffs likely ahead… shoot for more like nine to 12 months,” Saneholtz advises.
Crystal McKeon, a CFP at TSA Wealth Management, recommends a little less for emergencies. She hopes to have $300 to $500 available for cash-only, unexpected expense emergencies. She prods people to set realistic expectations by setting your first savings target at $50. “If you start at $50, it’s more than you had last month,” she points out. For those living paycheck-to-paycheck, even modest savings and plan membership can build up the financial stability and security that they need.
While having readily accessible cash is invaluable, personal finance experts warn not to keep too much cash at home. Nicole Sullivan, a CFP and co-founder of Prism Planning Partners, cautions that cash is not without its risks. “It can be subject to loss, theft, destruction or even impulse,” she notes. Crystal McKeon would second this call, particularly for the dangers that storing large amounts of physical cash poses. “I wouldn’t go overboard with physical cash, since it’s not FDIC-insured and doesn’t earn interest,” she states.
On top of that, the inability of most Americans to cover an unexpected emergency expense is equally troubling. A new 2025 data set from U.S. News & World Report paints a pretty grim financial picture. Approximately 42% of Americans have less than $400 in emergency savings and 40% cannot pay a $1,000 emergency expense. This shortfall further emphasizes the need for financial planning and readily available funds.
Melissa Caro, CFP and founder of My Retirement Network, emphasizes that the decision to keep cash at home is a personal choice. On the one hand she recommends not continuously keeping large amounts of physical cash on hand because it isn’t insured by the FDIC and doesn’t earn interest. If you want to have cash on hand, set an early threshold goal of $1,000. This relatively modest sum would go a long way toward shielding families from the small-scale emergencies—car breakdowns, unexpected medical bills, etc.