How much liquid cash do you keep available?

[Drake3287]

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.

 

[Koolau]

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

 

[ShokWaveRider]

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.

 

[Car-Guy]

I still have one remaining expensive/cash intensive habit/hobby so I keep several 100k in my checking accounts.

 

[Koolau]

I still have one remaining expensive/cash intensive habit/hobby so I keep several 100k in my checking accounts.

Hmmmm. Let me guess..........

 

[erkevin]

I keep $2k in cash in the safe and another $2k in a crappy savings tied to my checking. We have another $50k in a HYSA for emergencies; it would take 24- 48 hours to transfer and access it.

 

[HI Bill]

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.

+1. After last year with almost $0 earnings, I was shocked that for
January, we received almost $900 (VMFXX).

 

[audreyh1]

I always have at least a year’s worth of cash in high yield savings and/or money market funds. And some liquid for rebalancing investments. These are still paying decent rates. Only cash beyond that is invested in 6 to 12 month instruments with higher yields.

Not interested in chasing every last little bit. In fact MM funds are out yielding some older longer term investments.

I’m going to earn far more interest income this year than usual. Traditionally most of my taxable income has been long term capital gains and qualified dividends.

 

[aja8888]

In my wallet....usually no more than $25 in $5 dollar bills.

In the house.....maybe $300 cash in the safe.

In the accounts....it varies from a grand (local checking) to $50 K in Schwab MM.

 

[COcheesehead]

Zero at home.
About two months of expenses in checking.
Why so low? I have a bond ladder that throws off tons of cash almost every month.
Need more? I can liquidate virtually my entire taxable account in 24 hours.

 

[ownyourfuture]

+1. After last year with almost $0 earnings, I was shocked that for
January, we received almost $900 (VMFXX).

In February 2021, the ADB in my Fidelity cash account was around 80K. (was considering buying another house) Interest/dividend for the month was $0.69

For January 2023 the ADB was around 21K & I received $70.14

0.01% to 4.02% = 40100.00%

 

[marko]

We live on our dividends so we have them transferred to a MM account within TRowe. About a year's worth of spending.

Oh, and we keep about $40-$100 in the kitchen drawer for odd expenses, delivery tips and Sunday church.

 

[RunningBum]

I keep at least 2 months of expenses at my bank in checking and HY savings.

I have a spreadsheet with a plan to keep cash available to the end of 2027 (end of ACA with subsidy for me) from quarterly taxable MF dividends, CDs and T-bills maturing, etc. so I don't have to sell any of the funds and incur extra income. If I spend less (likely), I'll roll it into more CD or similar investments. If I need more, I'll cash in I-bonds or raid the Roth.

 

[RobbieB]

About 50 to 150 grand.

 

[FI_RElater]

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.

I don't do single large CD's but rather break them up into smaller groups, e.g. for the ~150k coming due this quarter they generally are going to be 50k increments... that way I don't have to pull the entire CD and be subject to the early withdrawal penalty (if the funds were needed for say a new roof or vehicle)

As for us.... a couple of grand at the house.... and just under ten grand in a couple of credit unions.... with significantly more available very quickly at the brokerage if really needed.

 

[rk911]

i'm interpreting "liquid" to mean cash-in-hand without the need to visit a bank or ATM. in our case wee keep enough cash on hand to see us through a few days to 1-2 weeks based on normal spending habits. but we also keep our pantry, fridge and freezer stocked.

 

[dmpi]

50-60K in case something comes up.

 

[jollystomper]

We keep less than $200 cash on hand (which reminds me I should probably make an ATM run, since we are currently down to $40 and we have not visited an ATM since September).

There is several thousand in the checking account for a couple of days at the beginning of the month until the bills hit, then it will be in the $200 range for the rest of the month depending on what we need to write checks for (and we are writing at most 2-3 checks per month these days, if any). We have a linked savings account at same institution that we keep at $5K, the max as they pay lousy interest.

The rest of our liquid cash is in online high yield savings accounts. We can transfer funds to the local checking/savings in 1-2 days if needed.

 

[Koolau]

We keep less than $200 cash on hand (which reminds me I should probably make an ATM run, since we are currently down to $40 and we have not visited an ATM since September).

There is several thousand in the checking account for a couple of days at the beginning of the month until the bills hit, then it will be in the $200 range for the rest of the month depending on what we need to write checks for (and we are writing at most 2-3 checks per month these days, if any). We have a linked savings account at same institution that we keep at $5K, the max as they pay lousy interest.

The rest of our liquid cash is in online high yield savings accounts. We can transfer funds to the local checking/savings in 1-2 days if needed.

I'm sure part of my cash "hoarding" is habit, though as mentioned, there are times when it's handy. Our "grid" is the Island. It went down completely for 18 hours one time. A rare lightning storm took it out. IIRC there were two radio stations able to broadcast. One could only buy with cash. Even then, not every store was willing to take cash for essentials and keep tabs on purchases. Many stores just shut down because their registers wouldn't scan or ring up or calculate change. Most folks can't do those things any more on a pice of paper.

 

[KB]

I keep $1000 at home, $10,000 in my checking and anywhere from $10K to 50K in high yield savings. All the rest is invested.

 

[luckydude]

Currently around $500k (a few thousand at home + rest in bank and MM accounts). We also have a home equity line of credit that we can tap.

I like having the extra liquidity that DW and I can draw on if we come across good RE investment deals. Also, it helps me to sleep better at night knowing I have enough ready cash to fund our annual spending for 4-5 years without having to touch any of our other assets.

 

[Jerry1]

I keep at least $1K at home. There’s at least a year in liquid assets to tap at any time. I just don’t see much value in locking up money. The spread between 3 month CD’s and one year just isn’t that great. Also, there’s the ability to ladder so some could be coming due every three months. I’m at about 50/50 and the 50% that is not equities is very liquid. I don’t worry about it being totally liquid, as in cash in a checking account.

 

[Katoslake]

6 months worth of expenses in checking/money market.

Enough cash/cash to last a few weeks if we have emergencies that prevent ATM access or power grid failures and the like.

 

[gayl]

1 yr expenses in savings account, $50 cash at home.

 

[kgtest]

$50 cash at home in a drawer. Anywhere from 0 to $6,000 in our checking account. The rest goes into the stock market.