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Never more than $100, because if I get robbed, I could afford to lose that. I could not afford to lose $1000, but I know many people who carry that much. Normally for me, it's just my daily budget for lunch, etc....$10 or $20
A little over a hundred is a good compromise. You should only be using cash at places that don't accept credit cards and in emergencies. And how often will $40 get you out of an emergency?
Think about yard sales, too. You never know when you'll need a cool hundred to seal a deal.
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