Emergency savings, travel savings, house savings (down payment, closing costs, etc.), wedding savings. Retirement doesn’t go in savings accounts - they are in investment accounts. I basically have a savings account and savings goal for anything with a substantial cost, and auto deposit into them from each paycheck. That way you know you are making progress toward those goals, and what leftover discretionary income you can comfortably / confidently spend.
I keep $20k in my checking account too. The reason is that I have several major expenses on auto-pay. If I had to remember to transfer money into my checking account the day before, that would defeat the whole purpose of auto-pay. I’m willing to lose out on a bit of interest in exchange for reducing my mental load.
@skftjiqlxj Are you single? I’m married (dual income, joint account) with kids. Our expenses vary by much more than $1500 each month. Our big auto-pay bills are all clustered near the beginning of the month. And I don’t want to have to keep close track of what my spouse spends.
$35 a month is nothing. I really don’t want to have to think about how much is in my checking account more than once every month or two.
Well now that I think about it....my total checking balances are around 4-8k through the month, I just didn’t think it through cuz my fixed expense checking I never have to look at. I guess if you take mine and double it, potentially ends up at $16k which is in range with your 20k for dual income and kids.
I can’t imagine putting “rest” into investments given the markets are so volatile. If all of you are referring to real estate (mortgage payments) I understand that but etfs too are being hammered. Btw I have a 6 digit portfolio outside of my 401k and iras, I don’t plan to increase my capital in portfolio until these volatility levels decline
I ran my average spending on mint trends for the last year and direct deposit this monthly into checking. I just check at the beginning of the month since mint also shows bills due just in case to see if it covers during bill due. If I make a big purchase I schedule a transfer from savings to checking right away for a few days before credit card is due, set it and forget it. And I try to keep a $1500 buffer. Hovers around $4-8k