Money

Liquid Cash in bank account

Mar 10

How much % of your total liquid assets are in cash in your bank account ?

For me it’s like 30%

comments

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  • Facebook public2
    3 to 6 months expenses, never a drop more.
    Mar 108
    • Apple EqbI36
      Just invest that too. 1.3 x (6 months expenses). Unlikely you’ll need instant access to it even in an emergency, and you’d need to transfer from savings (2-3 days) to a spending account anyhow. And the extra 30% gives a buffer against an ill-timed downturn.
      Mar 10
    • Facebook public2
      Yikes, hard pass. Do not recommend.
      Mar 10
    • Apple EqbI36
      You’re an idiot.
      Mar 10
    • Facebook public2
      You've proven my point. Good luck sir with your extremely risky game.
      Mar 10
    • Apple EqbI36
      What was your point? And how does you being an idiot prove it?

      Inflation is risky. I’m not just making this advice up, this is what people with money and investment acumen do with their EFs after they’ve moved on from simplistic Dave Ramsey stuff.

      https://www.betterment.com/resources/safety-net-funds-why-traditional-advice-is-wrong/
      Mar 10
    • Facebook public2
      The fact that you resort to name calling ;)
      Mar 10
    • Apple EqbI36
      A spade’s a spade.
      Mar 10
    • I keep mine in a standard FDIC 2% savings account that I can transfer to checking immediately, no wait time. I keep 6 months of living expenses there.

      My total liquid assets are many multiples than 6 months of living expenses, so the peace of mind of having those in a secure savings account trumps any possible additional small interest that I could gain by fully invest that sum in more risky avenues. Just last year I had to write a 5 figure check (no credit card) for an emergency expense, and I didn’t even worry, since I had the liquidity right there.

      I’d say if one worries about the interest generated by 6 months of living expenses you’re probably not making enough money and you’re probably not growing the rest of your nest egg fast enough, so you have other problems to worry about. In perspective, the interest generated by 6 months of expenses should be completely irrelevant.

      I agree with public2, and the link you posted sounds as very bad advice to me. It’s called emergency fund for a reason. You can take risk with the rest of your portfolio, which should be massively larger than your EF anyway.
      Mar 10
  • 2.5%, which is 6 months of living expenses.
    Mar 102
    • Lyft / EngDamn Son
      Does that mean you have 20 years of living expenses invested? Sounds like you could retire!
      Mar 10
    • That is correct, 20 years of expenses covered (I live frugally). I don’t think I have enough yet to retire since eventually I might want to spend more, plus I’m still young (32) and enjoy working in tech.
      Mar 10
  • New VSwf01
    50%, we have enough cash to cover 240 months of expense.

    For those who like to give unsolicited advice. Please don't tell me how to invest my money. Go earn yours and do with it whatever you wish.
    Mar 102
    • Apple Wapple
      Close-minded much?
      Mar 10
    • eBay abababbb
      Waiting for recession to go shopping?
      Mar 10
  • Facebook ae86tofu
    Percentage seems too high but what's more important is, like everyone else said, ~half year worth of expenses. Everything else is invested in something that's higher than the .05% or whatever you get in a bank account.
    Mar 102
    • Facebook public2
      Bank accounts pay 2.25%. Make sure your rates are competitive!
      Mar 10
    • Google
      tsukino

      Google

      BIO
      w
      tsukinomore
      ww
      Mar 10
  • Intel / Eng
    401kFan

    IntelEng

    PRE
    Broadcom Inc., Motorola Mobility (a Lenovo Company)
    401kFanmore
    10% of my total liquid asset. This is more than enough of my 3-6 months average expense, but it's always nice to stash away extra cash to inject money for market crash like last Dec 2018. ^.^;
    Mar 100
  • Facebook / Biz DevIsiskendi
    Typically 2-3 percent, but about 20 perdent now as I am nervous about market valuations
    Mar 100
  • Qualcomm dynasty001
    Just 6 months of living expenses as an emergency fund. Thats it. Everything else gets invested like a clockwork
    Mar 100
  • Salesforce Belgium
    Just have 4 months worth of all expenses.
    Mar 100

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