Is the cash in your wallet insured? If stolen do you have recourse? Now you might tell me you have no cash for this very reason. That’s fair, but probably similar to the amount of money you should allocate.

Yes my homeowner's insurance policy covers theft outside my home (although the amount of cash in my wallet is usually less than the annual deductible). If it's stolen and I can identify the thief then I do have recourse through the civil courts.

Can the cash in my wallet be stolen by a script kiddie in China if my security measures aren't exactly perfect? Does it fluctuate in value up to 10% every day?

Personally, I don’t carry cash on me. The only time I use it (kid’s lunches, lottery tickets for office pool (I refuse to be left behind in the unlikely event they win, otherwise wouldn’t play), and spur of the moment things requiring cash/check), I either withdraw right before needing or the night before. I also don’t do checks, really.

I’ve been able to get by with card for the vast majority of things, so it works for me.