How much liquid cash do you keep available?

[Drake3287]

^^^^^
Or wearing a 6 to 8k+ Rolex on their wrist. Mine is usually in the safe but I'm always uncomfortable when I do wear it.

Exactly. The first thing my AD said to me was be careful, wearing a Rolex is no different than having $10k sticking out of your back pocket. Of course that $10k is now closer to $20k.

 

[Drake3287]

I am happy to report I have never owned an iPhone. Especially a 1000 one. Most I have spent on a phone is 300 or 400.

Rolex...pfft. Nothing to prove here. Although I do own quite a few cheaper watches that if added all together are around $1000.

That "pfft" has made me more money than any investment I've ever had! My $10k Rolex GMT is now worth over $20k in a matter of a couple of years.

 

[audreyh1]

DH sold his Rolex years ago since he almost never wore it. It had a nice appreciation, taxable of course.

 

[Koolau]

That "pfft" has made me more money than any investment I've ever had! My $10k Rolex GMT is now worth over $20k in a matter of a couple of years.

Heh, heh, nothing made until you sell it - and I'm betting you're gonna keep it!

 

[Koolau]

DH sold his Rolex years ago since he almost never wore it. It had a nice appreciation, taxable of course.

Of course.

 

[Car-Guy]

That "pfft" has made me more money than any investment I've ever had! My $10k Rolex GMT is now worth over $20k in a matter of a couple of years.

DH sold his Rolex years ago since he almost never wore it. It had a nice appreciation, taxable of course.

Mine was a gift so I'm not really inclined to sell it... (Seems tacky to me) Had no idea they have appreciated that much...

 

[BruinBones]

I like to keep a wad of small bills for emergencies. We have a lot of power failures and it can be nice to have cash (and coin) for purchases. YMMV

I keep several hundred dollars in cash at home in case a large power outage makes ATMs and credit card machines unusable. I keep a several thousand dollars in a relatively HYSA for monthly bills and emergency fund, and I have several thousand dollars in CDs. The remainder is fully invested.

 

[JohnRM]

Remember, it's only "too much" if YOU think it's too much. I have "too much" in checking - and I like it that way, so YMMV.

Me too, and a lot in savings, I get 3.75% at Citizens Bank. I don't like fooling around with CD's. Most of our retirement is handled by Merrill Lynch, but I like to have liquidity that is faster to access also.

 

[53anddone]

In 2022 I took a grand total of $1500 from the ATM. Barely use cash anymore.

In my accounts I have a pile of rolling 3,6,9 month T-Bills which leave me with "what to do with the cash" decisions almost monthly.

Not my biggest issue which is good I guess.

 

[CardsFan]

Funny how this differs with people. I would never have $500 in cash on me. I would feel uncomfortable. The most I ever have on me is $20 - $50, and it's usually only just a few $5 bills for tips. CC for everything I need to purchase.

Since you are the only one who knows you have $500 in your wallet, why uncomfortable? I am far more concerned about loss of CC's and ID than money.

FWIW I normally carry $200-$300 in large bills. tucked away, just in case, and then $100-$200 in twenty's or less for normal spend. I use CC's most of the time, but cash does come in handy.

To the OP's question, Liquid funds (money I can get in a day or 2 even if the stock markets are closed) ranges from 5-10% of invested assets. Right now it is about 7%. It will be a little less next month when I buy a new car

 

[mickeyd]

Since the operative word is "liquid", I have about $100 cash in my wallet. It has been there for maybe 6 months. Since we reside in a CCRC and pay up-front monthly, I seldom have need for cash unless I go "outside the wire." If I need cash, there is an ATM here that I used 6 months ago to get $100 for my wallet.

 

[Lron58]

We keep a wodge of cash for emergencies. Way too much for some here, but I like to buy what I want when I want. Currently we have way too much in MM, but it is making 4.53% as of Friday.

May I has what MM you're using to get an over 4% return?

 

[mickeyd]

VG CRFMMF has a 7day yield of 4.5%.

 

[FLJim]

First off I realize this question will be different for everyone based on everyones personal financial situation.

With 5% or higher CD's almost the norm now, I'm trying to earn that last interest dollar out there but I'm a little nervous about having most of my liquid cash assets tied up for 12 months or so. Assuming you have no large expenses planned in the near future, how much cash do you keep available in a lower paying but available account such as savings?

And of course I always have credit cards available as a backup for emergencies or last minute large purchases. My other CD's are also laddered so I'm never more than a few months out until I can access it. Most of my CD's are in the 100k range currently.

We have equities which give us over $60K in taxable dividends annually. Do not want any more equities so $1.1 M stays in MM at 4.46%. another 200K in checking to pay bills. Never thought we would have this much, but we do.

 

[Drake3287]

Heh, heh, nothing made until you sell it - and I'm betting you're gonna keep it!

True, but it sort of took the sting out of buying it. Still looking for a second watch but of course there'll next to impossible to find these days. In my case, our local AD lost there Rolex contract because they were a small dealer. Now it's next to impossible to get a watch unless you have a history with a new dealer.

 

[pc95]

Enough for car emergencies and monthly expenses: ~$25k.....still working so on-top of income/outlays.

 

[swakyaby]

I think overall, the amount of liquid cash must differ depending on whether one has regular income rolling in, like a pension or social security or wages. When I was w*rking, my cash was about $100K in a money market. But now that I’m retired with no pension and not yet collecting social security, my liquid cash is closer to $400K so I don’t have to sell equities in a down market.

 

[youbet]

I think overall, the amount of liquid cash must differ depending on whether one has regular income rolling in, like a pension or social security or wages. When I was w*rking, my cash was about $100K in a money market. But now that I’m retired with no pension and not yet collecting social security, my liquid cash is closer to $400K so I don’t have to sell equities in a down market.

Some of the terminology in this thread is confusing. What is this "liquid cash" you refer to? Is it different than just plain old "cash." The implication is that there also exists "illiquid cash" and I can't fathom what that would be.

I divide "cash" into three categories:

(1) Liquid assets within my AA such as MMMF's. For various reasons, my current FIRE portfolio AA has almost 10% in cash, much higher than typical.

(2) Coverage for near and mid-term spending such as the checkbook and bank savings accounts. We could cover a year or so of spending.

(3) Currency. I keep a few kilobux in small bills split between our home and at my son's house. I've been cringing a bit lately at the expense of doing this since MMMF's are paying well over 4%.

 

[Koolau]

Since you are the only one who knows you have $500 in your wallet, why uncomfortable? I am far more concerned about loss of CC's and ID than money.

FWIW I normally carry $200-$300 in large bills. tucked away, just in case, and then $100-$200 in twenty's or less for normal spend. I use CC's most of the time, but cash does come in handy.

Pretty much my MO as well. Unless one flashes their cash, no one is more likely to target you than anyone else. Discretion with cash is advised as with many aspects of this life. I don't look homeless when I go out, but I rarely look well dressed either. I wear no rings (a habit I picked up w*rking in a lab) and I've never worn any kind of chain or other man-jelwery (not even my $8 watch now.) YMMV

 

[audreyh1]

Speaking of flashing cash, I remember one of our French tour guides scolding DH for putting money away in his wallet after stepping outside. You are supposed to do it inside of course.

Same guide on a different day trip got on my case for holding the wine glass by the bowl instead of the stem.

He was an excellent small group day trip guide. The French have no trouble speaking up if they think you are doing something wrong, ha ha.

 

[Koolau]

Speaking of flashing cash, I remember one of our French tour guides scolding DH for putting money away in his wallet after stepping outside. You are supposed to do it inside of course.

Same guide on a different day trip got on my case for holding the wine glass by the bowl instead of the stem.

He was an excellent small group day trip guide. The French have no trouble speaking up if they think you are doing something wrong, ha ha.

Heh, heh, that's why Americans love them so much! (Now that I think about it, they sound a bit like this bunch here on FIRE Forum.) YMMV

 

[FlaMariner]

Just ran a query on our checking account for 2022.....

We visited the ATM 5 times and withdrew $860. So that is my "total liquid" currency for the year.

Primary reason is my haircuts, her beauty parlor appointments and travel tip money....only places left that are still "off the grid".

Also looked at our cash back refund amount from our BofA credit card...It's real money $2,483.40 cash back for 2022. Incredible. Why would I ever use currency? Only if I have no alternative.

 

[samcat]

We have lots because it makes us feel better! And, we keep $5k in 10s and 20s in a safe in case power goes down for a long time and we still have to buy food.

 

[mebden]

I'm still working but I keep over 100000 in a high interest savings account which is bask Bank paying 4.16% interest daily making around $400 monthly but now from this website I've found a new higher paying interest savings account with Primis paying 4.92% interest so no need to for any CD's here and always keep cash on hand of around 500 just in case of another hurricane I never thought I'd see 1 in the 1st place, till I can get out of the rat race and move to a no state tax state also keep $5000 in my checking and thinking of changing from a Regions no interest checking to a Primis checking also paying 4.92% interest.

 

[street]

To me cash means greenback and checking account as the most liquid. I don't consider MM or CD's as cash but then again that is what it means to me.