How much liquid cash do you keep available?

[old medic]

in March 2020 ...... Places really didn't want cash back then unless it had been sterilized in a nuclear reactor.

Didn't have problems using cash around here, but had issues getting the change back. Several times I paid up to the cents, and then tried to put the rest on my ATM card.... 99% of the time they suddenly found some change.

 

[retire48in2018]

We have about 2-3 years worth. (Did have 3-4, been using cash in this down market). We can vary out budget for expenses/market conditions.

It’s almost all in money market funds.

Our investment is all in equities, so this is our cushion for down markets.

We will be moving in next year, selling home & buying in new location. Relocation from IL to TN. So, more cash in line with these extra expenses (both known & unknown).

Long term, I’d expect to maintain just 1.5-2.5 years in cash & money market funds.

 

[pacergal]

Have about $2000 cash on hand in the house--have lived through ice storm where only cash was accepted as lines were down, no ATM, etc.
Available via bank/CU--anywhere from $5K-30K available same day withdrawal.

 

[Toocold]

For my investment account, I kept 20% in cash to half the duration of my fixed income portfolio, in anticipation of rising interest rates. I'll adjust now that interest rates are no longer expecting to sharply rise.

For my bank/cash management account, I have about a years worth of expenses, which I keep in a money market fund.

For my primary spending account, I transfer a month's spend every month.

I think I've had $40 in my wallet for the past year.

 

[Marc]

When I retired five years ago I decided to keep two years of expenses or 10% of my assets in "cash." With the downturn, this means that I won't have to sell any stock funds until mid-2024. For most of time this money was earning next to nothing but now it earns 4.4%. I am beginning to contemplate what I will do if market doesn't return by mid-2024; but that is still a far bit away.

At home I keep less than $1,000. I have about that much in ammunition, too, if needed.

Marc

 

[Koolau]

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.

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.

 

[jkern]

Keep about $1000 in the house for pocket money
Keep about $25K in checking, saving accounts for operating capital
Keep about $35K in MM accounts for non-routine discretionary purchases/emergencies

 

[Rocky mtn high]

I keep about 12 months in cash at all times.

 

[jazz4cash]

The thread serves as a reminder how many different interpretations of “liquid cash” we have among the members here.

 

[Drake3287]

Thanks for the comments, certainly a wide range of answers. For me, I have a pension that we easily live off so I was just wondering how much cash made sense to have easily available for emergencies. Sort of lending towards $10k at this point.

 

[Koolau]

Just got $400 in cash today from the bank because my pocket cash was getting low. I don't like to carry less than about $500. No particular reason, but I always want some cash with me. A habit from my youth when I finally had enough money to have some cash on hand.

 

[gcgang]

About $5k poker money at home, $20k in safe deposit for Vegas working capital.

 

[aja8888]

Just got $400 in cash today from the bank because my pocket cash was getting low. I don't like to carry less than about $500. No particular reason, but I always want some cash with me. A habit from my youth when I finally had enough money to have some cash on hand.

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.

 

[Time2]

After a scan of this thread, I find no reports of lumpy mattress's!
Or even a small pillow.

 

[Ronstar]

I have about $130k in mm funds. I delve into it whenever my annuity and ss don't cover my bills. My idea was to use cash so that I didn't have to withdraw from equities, especially in a down market. Or to use for a new property down payment.

 

[Ready-4-ER-at-14]

We used to keep about 2k in bug out bag but used that on a vacation and have yet to replenish most of it. Probably due that slowly in March. Except for barber and hairdresser about only cash we use is for dancing and soft drinks there of maybe $100-200 a month in pocket money. Most of those optional dancing expenses are prepaid annually. Pretty much everything else is on a credit card.

Had way too much in redundant emergency funds at brokers paying squat for interest.
Moved almost all of that to CD ladders. Now payouts every month for next 3 years and basically quarterly out longer than most here might consider prudent.

In terms of basic recurring expenses like phone, electricity, HOA (home owner association assessment) I assume you have grace periods before any shut downs or evictions occur. And if we can't touch savings, investments, from any of various institutions, I know a whole lot of people are also defaulting.

That would sort of be like what happened in US when the south lost the civil war I suspect. Scarlett O'Hara and Brett Buttler might have to be our guides. Well fiddle e dee! : )

 

[target2019]

Pillows and mattress are not included.

In the local bank, for bill baying, we keep the amount of one month's average bills and add 50%. If our monthly is $5,000, then I'd be worried if I saw anything less than $8,000 or so.

In practical terms, when the balance stays at 2X what we need monthly, then I move money to Discover or Schwab.

Our income consists of SSA checks and a pension going into the checking account. So that should be considered in the analysis.

CD's and such are not included for short-term analysis, in our book.

 

[target2019]

The thread serves as a reminder how many different interpretations of “liquid cash” we have among the members here.

Yes, I've noticed that. I use different terminolgy in my head.

There's cash in the house and carried in my wallet. That is a very low number (I think. Lol). That earns 0%.

There's cash at the local bank. That earns .5%

There's cash in money market. That earns 3-5%.

And so on.

 

[Surewhitey]

We keep a month's expenses @ home. Been laddering CD's & I-bonds / treasuries for a year or so... Probably too much, but about 2-3 years' expenses. Probably $10k for monthly payments and life... CC for emergencies with a 30 day float that allows for moving funds around.

Getting 4.7% on 2 yr ladders & 4.75% on 5 yr CDs (callable).

 

[FlaMariner]

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.

We lived in New Orleans during Katrina and now in Florida. Our hurricane prep checklist includes filling up gas tank and going to ATM. We have a week to panic and prepare!

 

[Drake3287]

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.

But at the same time most people think nothing of having a $1,000. iPhone sticking out of their back pocket!

 

[Car-Guy]

^^^^^
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.

 

[kgtest]

But at the same time most people think nothing of having a $1,000. iPhone sticking out of their back pocket!

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. I got sick of changing the batteries so most of them are sitting in a watch case dead.

 

[W2R]

My present phone cost $149.

I don't even wear a watch now that I'm retired! If the youngsters can go without one, then so can I.

 

[Koolau]

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. I got sick of changing the batteries so most of them are sitting in a watch case dead.

My present phone cost $149.

I don't even wear a watch now that I'm retired! If the youngsters can go without one, then so can I.

Heh, heh, my "smart phone" IS my watch and cost $89. We are all so different in what we value. Vive la différence.