How much liquid cash do you keep available?

[mountainsoft]

Less than $40 cash in our wallets. Haven't spent any in over 6 months.

$300 cash stash for power outage emergencies.

$2K in each checking account. Allows small expenses while staying above minimum balance to avoid bank fees.

$65K in a high yield savings account (3.3%). Emergency fund, and 2-3 years of living expenses, after pension, to ride out down market once we retire.

Remainder in Roth IRA accounts. Half is S&P500, half is in 4.5% CD's. No bonds currently.

 

[FLSUnFIRE]

All in pennies, so it's usable for self defense?

 

[FlaMariner]

We keep zero to $20 in cash (based on haircut schedule)

We keep $60,000 earning 4.75% in Dominion Energy Reliability Investment account (liquid).

Our goal is to get close to a zero liquid life where the incoming interest, dividends, pension, etc. cover the bills.....Just-in-time Inventory method.....and maximize any $$$ collecting dust.

In case of emergency, we have a credit line with the brokerage account and a bunch of credit cards.

My money needs to w*&k harder than I did.

 

[PatrickA5]

$1,200 in safe. About $5K in checking earning zilch at B&M bank. Another $10K in MMF earning 4.4% at B&M bank.

 

[FLSUnFIRE]

In case of emergency, we have a credit line with the brokerage account and a bunch of credit cards.

Credit cards have little utility when internet and cellular connections are down due to natural (or man-made) disaster. Surprised as a Floridian you wouldn't keep a little cash on hand.

 

[wearefinishedworking]

Laughing at Street and his 'cold hard cash'. My Dad kept 10k in cash at all times in random envelopes all over the house. After he passed my Mom continued to be surprised by opening envelopes! We keep about $1200 in safe.

 

[audreyh1]

I have 40k sitting in a MM at my local bank and I'm barely earning anything (still!). Apparently I need someone to explain how to benefit from MM better. I like the idea of having money in a brick and mortar local place in case of an emergency, but I don't need more than 10k or so for that.

I usually keep a few hundred in my house, I've got 40k in savings and another 20k in CDs. I live a fairly modest lifestyle.

There are money market accounts - these are in banks.
There are money market (mutual) funds - these are available in brokerages.

Two completely different things.

Do you have a brokerage account? That’s where to look for the MM fund.

 

[RetireAge50]

About $5,000 in checking since the credit union pays 5%. Another $300 or so in cash to pay for golf scrambles, poker, and margaritas in Mexico.
We have regular money coming in every month from pensions and investments so no need to have a bunch laying around in cash. For emergencies or big purchases we have a $100,000 line of credit we rarely use (and pay off quickly if we do).

 

[MarieIG]

My apologies, I meant cash/funds still available in an account that's not a time deposit account such as a CD. Because of the low rates over the last few years I've always had $100k or so easily available in a low interest savings or checking account.

Now that rates around 5% I'd like to invest as much as possible while at the same time keeping cash/funds available for a rainy day or unexpected need.

Not sure if you are counting money market accounts. I drastically cut down on the funds in my bank checking and savings accounts, and closed two savings accounts which were earing virtually no interest (buying short term treasuries with that money). I migrated further money from bank accounts over to brokerage accounts that are linked to my checking accounts, and park cash in money markets, which I consider easily available. If I can earn over $4k on a 100k in a money market over the year, I moved that money.

Low interest banks, circa 30k.

I keep some cash for in person shopping and church envelopes.

Cash/ Money markets in taxable accounts are a moving target due to my buying short term treasuries, but >100k.

 

[scrabbler1]

I keep $30-$60 in my wallet, to pay for small cash expenses (<$25) such as buying gas, pizza, haircuts, and sometimes going out to eat at restaurants. It is replenished by the cash I keep in my apartment, at most $160 when I make a monthly trip to the ATM.

As for cash in the bank, I keep $2,200 to $4,000, replenished monthly with a bond fund's big dividend. That pays the monthly bills with the $2,200 buffer, most of it enough to protect me against paying monthly account fees. Sometimes, I need to carry forward monthly surpluses into the next month to cover the larger, lumpier expenses such as car insurance and income taxes.

I keep $40k in a national muni bond fund, earning mostly tax-free interest, which also has checkwriting privileges in case I have to write a large check right away for any reason (and this happens, on average, about once a year). Not quite cash, but pretty easily and quickly accessible.

 

[Irishgirlyc58]

I keep $1,000-$2,000 at home in a drawer. I use it for birthday’s, haircuts, tipping, or various handyman projects that pop up.
I keep about $50 cash in my vehicle just in case. Maybe $20 in my wallet.
Bank Account 2 months worth of bills typically. It goes up and down. Additional savings account of $10,000 that can be immediately transferred to checking if needed.

I use a card for almost everything. If there was an actual immediate emergency I would use those. Not sure what that would be outside of a medical emergency that required immediate payment but I can’t imagine a scenario where that would happen. I guess I just put that in the category of if Martians land this is what I would do.

 

[RE2Boys]

Keep about $50K in checking and linked HY savings to cover unexpected expenses. In last five years, for example, I've had 3 cars totaled by the insurance company and was faced with obtaining replacements within weeks of each. Two were by deer strikes, the third was rear ended. Had the funds necessary to obtain replacements regardless of insurance claims and timetables. I never lease or finance the purchase of depreciating assets.

 

[Out of Steam]

Between our checking and attached savings account, we normally have an extra $2 to $3K. Recently decided to raise the target amount in our high-yield savings account from $10K to $25K in the next 18 months or so.

Had to go to a retirement account to cover a modest expense last year and we found it annoying.

 

[Koolau]

Laughing at Street and his 'cold hard cash'. My Dad kept 10k in cash at all times in random envelopes all over the house. After he passed my Mom continued to be surprised by opening envelopes! We keep about $1200 in safe.

In cleaning out MIL's house, we got lucky and found a $50 in one magazine as we were throwing stuff in a bin. Went back through all the magazines in the house and trash and found several thousand in cash. Talk about liquid cash.

 

[RunningBum]

Unreal how many people hide money in places their family may never find if they pass suddenly or their mind goes. I've got 2 places I keep some cash, and my son knows about them. I should probably add a note in my "read this in case of death" letter.

 

[Car-Guy]

In cleaning out MIL's house, we got lucky and found a $50 in one magazine as we were throwing stuff in a bin. Went back through all the magazines in the house and trash and found several thousand in cash. Talk about liquid cash.

Book markers?

 

[Irishgirlyc58]

Unreal how many people hide money in places their family may never find if they pass suddenly or their mind goes. I've got 2 places I keep some cash, and my son knows about them. I should probably add a note in my "read this in case of death" letter.

Ha! My kids developed the ability to smell cash on me when they were teenagers. Now in their 40’s they have passed this ability on to my grandkids.

 

[F.I.R.E User]

$2k EF.

 

[swakyaby]

I have 40k sitting in a MM at my local bank and I'm barely earning anything (still!). Apparently I need someone to explain how to benefit from MM better. I like the idea of having money in a brick and mortar local place in case of an emergency, but I don't need more than 10k or so for that.



I usually keep a few hundred in my house, I've got 40k in savings and another 20k in CDs. I live a fairly modest lifestyle.

SmilingGirl, read comment #57 by audreyh1. There is a difference between commercial bank money market accounts and brokerage money market accounts. My Wells Fargo bank money market account is earning a measley 0.25% interest and other commercial banks similarly pay only 0.1% interest for your hard-earned money. In contrast, my Vanguard Cash Reserves Federal Money Market Fund (ticker symbol: VMRXX) is yielding 4.44% with an expense ratio of 0.10%. Fidelity Money Market Fund (SPRXX) is yielding 4.28% with an expense ratio of 0.42%. T.Rowe Price US Treasury Money Market (PRTXX) is yielding 4.02% with an expense ratio 0.31%. There are many other brokerages, but you get the idea. It does take several business days to transfer cash via ACH from my Vanguard money market account to my bank checking account, but that’s always been accessible enough for me.

 

[nhcycling]

After reading through these replies, I need to do sit down and rethink what I’m doing. I keep way too much cash in my checking, HYSA and in my ‘wallet’. Thank you all for sharing and enlightening me. I know I shouldn’t ‘hoard’ cash just in case.

 

[audreyh1]

After reading through these replies, I need to do sit down and rethink what I’m doing. I keep way too much cash in my checking, HYSA and in my ‘wallet’. Thank you all for sharing and enlightening me. I know I shouldn’t ‘hoard’ cash just in case.

Honestly cash is getting such great rates these days I don’t worry about it, unless most of it is stuck in a low yield bank account. I just move it over t higher yielding MM funds and high yield savings accounts.

 

[skipro33]

I keep $12,000 in currency hidden in a vacuum sealed bag inside a rock wall somewhere on the property. After our house fire, and experiencing what it's like to not even have ID to make a withdrawal or a credit card, or driver license/ID, or even a mail box for delivery of such replacements, or birth certificate to get replacements, whew! we are now better prepared with stashes of documents and money hidden in fireproof locations.
In checking I keep about a year's worth of funds, $100,000 or so. In IRA, another $100,000 in government funds (savings) and about $200,000 in CD's with one that matures every 30 days for $25,000.
Everything else is in an S&P equity index fund as I have never found a need to draw on it since retirement 10 years ago. We do fine on pension and SS, underspending about $30,000 a year, when we buy another CD to add to the dough.

 

[jebmke]

After reading through these replies, I need to do sit down and rethink what I’m doing. I keep way too much cash in my checking, HYSA and in my ‘wallet’. Thank you all for sharing and enlightening me. I know I shouldn’t ‘hoard’ cash just in case.

in March 2020 as things were shutting down I withdrew $300 from the ATM. I don't know what I was thinking. Places really didn't want cash back then unless it had been sterilized in a nuclear reactor. I still have a little over $200 left.

 

[Smilinggirl]

SmilingGirl, read comment #57 by audreyh1. There is a difference between commercial bank money market accounts and brokerage money market accounts. My Wells Fargo bank money market account is earning a measley 0.25% interest and other commercial banks similarly pay only 0.1% interest for your hard-earned money. In contrast, my Vanguard Cash Reserves Federal Money Market Fund (ticker symbol: VMRXX) is yielding 4.44% with an expense ratio of 0.10%. Fidelity Money Market Fund (SPRXX) is yielding 4.28% with an expense ratio of 0.42%. T.Rowe Price US Treasury Money Market (PRTXX) is yielding 4.02% with an expense ratio 0.31%. There are many other brokerages, but you get the idea. It does take several business days to transfer cash via ACH from my Vanguard money market account to my bank checking account, but that’s always been accessible enough for me.

Thanks both of you! Just when I think I'm starting to know some stuff....
I guess I'll take a little time later this week to see about transferring some money around. I think I'll still keep at least 10-15k in the local bank for possible emergencies.

 

[old medic]

Unreal how many people hide money in places their family may never find if they pass suddenly or their mind goes. I've got 2 places I keep some cash, and my son knows about them. I should probably add a note in my "read this in case of death" letter.

My Brother has told me about his secret stash... has several $K in a firebox inside the oven.