How much cash do you keep at any time on checking?

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whoever
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Re: How much cash do you keep at any time on checking?

Post by whoever » Wed Feb 28, 2018 10:29 am

Grt2bOutdoors wrote:
Wed Feb 28, 2018 10:01 am
whoever wrote:
Wed Feb 28, 2018 9:48 am
50k in checking. Rest in high yield savings and CDs.
I hope you are earning some sort of high interest on that.
I am earning nothing. I get other perks with that account.

DriftWood
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Re: How much cash do you keep at any time on checking?

Post by DriftWood » Wed Feb 28, 2018 10:39 am

Most of the time, I have around $60k cash sitting across money market and checking accounts.

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dwickenh
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Re: How much cash do you keep at any time on checking?

Post by dwickenh » Wed Feb 28, 2018 10:44 am

jehovasfitness wrote:
Wed Feb 28, 2018 10:04 am
dwickenh wrote:
Wed Feb 28, 2018 9:46 am
I keep 30,000 in my rewards checking account. I get 1.95% interest on up to 30,000 as long as I use my debit card 10 times per month. Easy to get the 10 debits in the first 5-10 days of the month, then I use my 2% cash back Paypal M-card for all other purchases and bills. I consider it as a short term investment that pays a great interest rate. I replenish it with monthly pension and taxable account withdrawal. Currently, the checking account is doing better than my short term bond fund in my taxable account. Things will change in the future and bond funds will make up for the capital losses with increases interest rates.
Where are you getting 1.95?
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slayed
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Re: How much cash do you keep at any time on checking?

Post by slayed » Wed Feb 28, 2018 10:48 am

$5k - $15k. When my account hits $15k I transfer $10k of it to Vanguard or TreasuryDirect and let it build back up again.

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car733
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Re: How much cash do you keep at any time on checking?

Post by car733 » Wed Feb 28, 2018 10:50 am

Around 3 months of expenses.

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Re: How much cash do you keep at any time on checking?

Post by Darth Xanadu » Wed Feb 28, 2018 10:59 am

About 1 month of expenses. Similar to others who have posted, I have my checking linked to my EF Ally savings account with ~18 months of expenses.

I don't know what your expenses are, but your cash position in checking doesn't seem crazy low to me. Of course, if it's a sticking point with your wife, forfeiting earnings on an extra couple of grand a year to keep the peace seems like a smart move. :wink:
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Re: How much cash do you keep at any time on checking?

Post by itstoomuch » Wed Feb 28, 2018 11:04 am

Enough to pay the spouse's Dental :oops: :mrgreen: :annoyed
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mhc
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Re: How much cash do you keep at any time on checking?

Post by mhc » Wed Feb 28, 2018 11:08 am

I month expenses plus any money for upcoming large expenses (e.g., IRA contributions, new car, vacation).

Broken Man 1999
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Re: How much cash do you keep at any time on checking?

Post by Broken Man 1999 » Wed Feb 28, 2018 11:32 am

We start the month with $3,000 - $4000, as the credit card used the most has a due date of the second day of the month. My SS deposit comes in on the third Wednesday of the month, a LTD amount is deposited mid-month. As the month progresses, my main credit card balance drives any deposit needed from retirement portfolio. I try to have the least amount possible because of the non-existent interest rate on my checking account, plus the fact I can get money from retirement account in one day from Vanguard, if needed. Plus, every dollar removed from Vanguard is from a TIRA, so taxes must be considered as well.

I try my best to have every dollar I can stay invested.

Broken Man 1999
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HomerJ
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Re: How much cash do you keep at any time on checking?

Post by HomerJ » Wed Feb 28, 2018 11:37 am

livesoft wrote:
Tue Feb 27, 2018 10:07 pm
We don't even have enough to pay our credit cards bills right now. Generally we might have $500 to $5,000 in checking depending on our spending plans for the next 2 weeks. I will sell shares of investments periodically and move the money to checking in order to pay bills.
Too much work for me.

I don't let my checking account drop below $10,000. Which is about 2 months of bills.

When it grows into the high teens, and definitely if it hits $20,000, I move money to investments, and get back to $10,000.

But I almost never manually move money INTO my checking account. My auto-deposited payroll checks are bigger than our expenses, so checking is always growing.
Last edited by HomerJ on Wed Feb 28, 2018 11:43 am, edited 2 times in total.

Alan S.
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Re: How much cash do you keep at any time on checking?

Post by Alan S. » Wed Feb 28, 2018 11:41 am

About 8-10k.

omeganuts0213
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Re: How much cash do you keep at any time on checking?

Post by omeganuts0213 » Wed Feb 28, 2018 11:51 am

$0, have a brokerage account link to my checking. Bills are paid on the same day.

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Toons
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Re: How much cash do you keep at any time on checking?

Post by Toons » Wed Feb 28, 2018 11:52 am

5-10k






:happy
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mortfree
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Re: How much cash do you keep at any time on checking?

Post by mortfree » Wed Feb 28, 2018 11:53 am

Based on some of these responses (thousands, tens of thousands in checking), no wonder some BHs claim they don't have emergency funds...



.

Galaxy8
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Re: How much cash do you keep at any time on checking?

Post by Galaxy8 » Wed Feb 28, 2018 11:56 am

I keep one month's salary in my checking account (no interest), one month's salary in my savings account (1.5% interest), and one month's salary in savings bonds (4% interest, they're quite old). Together, these represent an emergency fund of 6 months regular expenses without cutting my expenditures.

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prudent
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Re: How much cash do you keep at any time on checking?

Post by prudent » Wed Feb 28, 2018 12:02 pm

Topic moved to Personal Finance (Not Investing).

omeganuts0213
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Re: How much cash do you keep at any time on checking?

Post by omeganuts0213 » Wed Feb 28, 2018 12:04 pm

I’m really surprised at folks keeping a high balance in their checking

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HomerJ
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Re: How much cash do you keep at any time on checking?

Post by HomerJ » Wed Feb 28, 2018 12:06 pm

omeganuts0213 wrote:
Wed Feb 28, 2018 12:04 pm
I’m really surprised at folks keeping a high balance in their checking
Well, it's all relative.

If you have $2 million, keeping $10,000 in a checking account isn't really that large.

nolesrule
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Re: How much cash do you keep at any time on checking?

Post by nolesrule » Wed Feb 28, 2018 12:10 pm

I don't let it drop below $1000, and I usually don't let it get above $10,000 unless it's a month property taxes are due or possibly right after a paycheck. I look at the balance after paychecks are deposited and evaluate upcoming cashflow needs for the next 2-3 weeks. What's not needed goes to savings. Our budget determines what will go to the brokerage account at the end of the month and is drawn directly from the savings account.

dirtlaw
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Re: How much cash do you keep at any time on checking?

Post by dirtlaw » Wed Feb 28, 2018 12:13 pm

I average $3,000 in checking and $1,500 in a linked savings account

blueman457
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Re: How much cash do you keep at any time on checking?

Post by blueman457 » Wed Feb 28, 2018 12:22 pm

2 months of expenses. Everything else gets stashed in to the savings account.

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DrGoogle2017
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Re: How much cash do you keep at any time on checking?

Post by DrGoogle2017 » Wed Feb 28, 2018 12:23 pm

About $20,000 in my regular checking account. I don’t want to cut too close.

Ron
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Re: How much cash do you keep at any time on checking?

Post by Ron » Wed Feb 28, 2018 12:35 pm

I keep more than I should in both my checking accounts and my wallet.

It's physiological; when I left home at the age of 19 (over a half-century ago) I had just a few dollars to my name. No bank account nor credit cards in those days. Even over the following years as a young married with a child, we were just scraping by and really never had much in cash reserves.

Today, I use charge cards and rarely need the cash; however I still feel better knowing that I have much more than just a few bucks in my wallet, along with being backed up by reserves in my local bank, credit union, and a FIDO taxable MM account.

And if somebody robs me of my wallet? c'est la vie...

- Ron

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randomizer
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Re: How much cash do you keep at any time on checking?

Post by randomizer » Wed Feb 28, 2018 12:43 pm

Anywhere between $1,000 and $20,000, but the typical amount is probably around $10,000. We live in a HCOL area and have a lot of expenses, so it's just simpler to keep a larger amount in there and not have to worry and fret about it going into the red if we don't watch it like a hawk.
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Rainmaker41
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Re: How much cash do you keep at any time on checking?

Post by Rainmaker41 » Wed Feb 28, 2018 12:46 pm

At the start of every month:

1 month’s expenses in checking (rent then paid out of this)
$0 on credit cards

6 months’ expenses in savings & CDs
$ for upcoming big purchases in savings

Everything else in retirement accounts
My username is not about money, but is my old online gaming username. I can't say that I make a great deal of money; I just hate spending it. Married the most loving woman in the world October 2017.

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camillus
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Re: How much cash do you keep at any time on checking?

Post by camillus » Wed Feb 28, 2018 12:53 pm

$20-30k earning 3%, FDIC insured across two joint reward checking accounts. Deferred contributions bring us into the 12% marginal tax bracket.

The low numbers on this thread would be surprising to the by-the-book Dave Ramsey or YNABers. The difference between the communities is that this one assumes you do taxable investing, after having filled up a 401k and two IRAs and perhaps an HSA - saving $30-40k per year as a baseline :shock:

scone
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Re: How much cash do you keep at any time on checking?

Post by scone » Wed Feb 28, 2018 1:24 pm

About two months of expenses. I probably don't need to, but all my bills are on autopay, and some, like propane, can vary from month to month. So having a little extra makes me feel more secure. It's just a psychological luxury.
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livesoft
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Re: How much cash do you keep at any time on checking?

Post by livesoft » Wed Feb 28, 2018 1:26 pm

HomerJ wrote:
Wed Feb 28, 2018 11:37 am
Too much work for me.
[...]
My auto-deposited payroll checks are bigger than our expenses, so checking is always growing.
And it's too much work for me to even have a job with an auto-deposited payroll check. :)
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welderwannabe
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Re: How much cash do you keep at any time on checking?

Post by welderwannabe » Wed Feb 28, 2018 1:27 pm

I don't let it fall below $1K. I don't do a Dave Ramsey style zero based budget, but anything left in checking over $1K at the end of the month gets invested.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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bligh
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Re: How much cash do you keep at any time on checking?

Post by bligh » Wed Feb 28, 2018 1:28 pm

In my primary checking I try to keep my balance between $5K and $12K.

I also keep another $6K-$8K across other checking accounts just in case.

thangngo
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Re: How much cash do you keep at any time on checking?

Post by thangngo » Wed Feb 28, 2018 2:02 pm

cam240 wrote:
Tue Feb 27, 2018 9:51 pm
Hello community,

As the thread title states, how much cash to keep from month to month? Our checking account balance is always 3,500-5,500. My wife really freaks out if it falls below 3,500 and got me thinking I wonder how this compares to other people’s practice.

Some info to add context:

Age: 21-22
Roth: 11,500
Savings: 24,500
Income 105,000

Thanks,
Checking account? Due to concern about security of checking account, I keep the bare minimum balance that I anticipate automatic contribution to brokerage account, scheduled bill pay, and credit card payments. The rest is either in online saving account or my taxable brokerage.

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DaftInvestor
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Re: How much cash do you keep at any time on checking?

Post by DaftInvestor » Wed Feb 28, 2018 2:09 pm

$500 Minimum with about an $8K Max. Max is only there when paycheck gets deposited there while bills are being paid.

miamivice
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Re: How much cash do you keep at any time on checking?

Post by miamivice » Wed Feb 28, 2018 2:18 pm

cam240 wrote:
Tue Feb 27, 2018 9:51 pm
Hello community,

As the thread title states, how much cash to keep from month to month? Our checking account balance is always 3,500-5,500. My wife really freaks out if it falls below 3,500 and got me thinking I wonder how this compares to other people’s practice.

Some info to add context:

Age: 21-22
Roth: 11,500
Savings: 24,500
Income 105,000

Thanks,
I'm at a way different point in life than you but I like to have 20k cash available as float. It allows me room to dip into if "unplanned" expenses happen (vehicle repairs, nice vacation, Christmas gifts, etc). If our cash balance gets much above 25k then we move that to taxable investment fund.

But recognize that what works for us is different than for you.

Big Dutch
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Re: How much cash do you keep at any time on checking?

Post by Big Dutch » Wed Feb 28, 2018 2:30 pm

$30k @ 3% in LMCU high yield checking accounts (one $15k account each for me and my wife). I consider this our emergency fund.

~Big Dutch

mouses
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Re: How much cash do you keep at any time on checking?

Post by mouses » Wed Feb 28, 2018 2:38 pm

radiowave wrote:
Wed Feb 28, 2018 8:51 am
We pay most of our bills by cc so checking account can vary widely. We try to keep minimum amount in checking, sometimes a few hundred and when a cc eBill is due, transfer it just before it's paid.
Same here. I'm retired, so only SS goes into the checking account plus whatever I transfer in from my slush fund account. I don't write a lot of checks, so I update my record of the checks and current balance whenever I do or when I authorize payments or money goes into the account. I don't even know if there's a minimum, but if there is, it must be like $1 or so.

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Re: How much cash do you keep at any time on checking?

Post by Clever_Username » Wed Feb 28, 2018 2:46 pm

I like to keep a total of three months expenses cash on hand. My total out-the-door in a typical month is a little over $5000. I keep about $7000 in checking at my bank, another $2000 in the savings account at that bank, and the rest in a money market at Vanguard.

My bills are my mortgage payment and HOA, due on the first of the month, and my credit card, which cycles on the 23rd of the month. I get paid a few days before the end of the month, and $7000 ensures I can send payment for my bills out the door without worrying and letting the paycheck come in to refill. I then transfer the surplus to Vanguard to invest as per my desired allocations.
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dbc47
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Re: How much cash do you keep at any time on checking?

Post by dbc47 » Wed Feb 28, 2018 2:51 pm

$35K to $40K in checking. Other cash kept in Prime MM and CDs.

JoeRetire
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Re: How much cash do you keep at any time on checking?

Post by JoeRetire » Wed Feb 28, 2018 2:55 pm

I tend to keep between $2,000 and $10,000 in checking, about $50,000 in a money market account, and 1 year's worth of expenses in Ally.

Texanbybirth
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Re: How much cash do you keep at any time on checking?

Post by Texanbybirth » Wed Feb 28, 2018 3:17 pm

If you ask me at the end of the month, it's >$5k, but by the second it's down to $100 or so. CCs and mortgage eat it all up. :-)

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HomerJ
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Re: How much cash do you keep at any time on checking?

Post by HomerJ » Wed Feb 28, 2018 3:19 pm

livesoft wrote:
Wed Feb 28, 2018 1:26 pm
HomerJ wrote:
Wed Feb 28, 2018 11:37 am
Too much work for me.
[...]
My auto-deposited payroll checks are bigger than our expenses, so checking is always growing.
And it's too much work for me to even have a job with an auto-deposited payroll check. :)
Touche` :D

jnet2000
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Re: How much cash do you keep at any time on checking?

Post by jnet2000 » Wed Feb 28, 2018 4:01 pm

Reading this post prompted me to move some cash from our checking to our savings account.

We keep 1,000 buffer in our checking account and enough to cover all of our expenses for the month. We move idle cash to our savings account so it will earn some interest or invested. We use our checking account as our operational or transnational account and do not allow too much to build in there.
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HornedToad
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Re: How much cash do you keep at any time on checking?

Post by HornedToad » Wed Feb 28, 2018 4:09 pm

$10k or so. Above that regularly then i transfer to savings.

kaudrey
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Re: How much cash do you keep at any time on checking?

Post by kaudrey » Wed Feb 28, 2018 4:17 pm

Enough to pay the monthly bills - at the low point each month, there is about $700 in it; at the high points, around $5K.

Utahdogowner
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Re: How much cash do you keep at any time on checking?

Post by Utahdogowner » Wed Feb 28, 2018 4:17 pm

westrichj312 wrote:
Wed Feb 28, 2018 8:57 am
I keep 50K on hand I figure it cost me about 280 bucks lost per year of MM interest but I like to have cash available when needed.
Same reasoning, but we only keep 20-40k. It helps me sleep at night. I have told myself that beyond 20k I was going to start transferring to a CD ladder or into our taxable investing accounts at the end of the month, but that number has grown from 20k + change to now current balance is 45k.

Probably time to move some to taxable! :sharebeer

Edit: Our checking account earns the same interest as the savings account at our CU.

CyberGypsy
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Re: How much cash do you keep at any time on checking?

Post by CyberGypsy » Wed Feb 28, 2018 4:56 pm

I usually keep around $25K between high yield savings and checking accounts. Currently, I'm thinking of moving some funds to Vanguard MM account.

Trev H
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Re: How much cash do you keep at any time on checking?

Post by Trev H » Wed Feb 28, 2018 5:17 pm

I have a no interest checking account at local bank...

I leave just enough in there to pay the monthly bills (with usually a 200.00 amount left just in case we need it, but hardly ever do)... and the rest gets xferred to online savings account that earns interest, or it gets invested.

I have a interest bearing savings account linked to the checking account... which pays very little interest (brick and mortar bank)... but it does act as OD protection, and the first level of my EF.

To me my checking account at local bank, is simply a place our payroll checks get deposited to (bank draft), and once they do, I reconcile, and pay bills, and once bills are paid, I transfer what is left (minus 200.00) to a place where it earns decent interest, or is invested.

I see no reason at all to keep a CHUNK of change in a checking account.

Trev H

westrichj312
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Re: How much cash do you keep at any time on checking?

Post by westrichj312 » Wed Feb 28, 2018 5:55 pm

you don't want to miss out on the 1% per year MM accounts you will be able to get a couple free pizza's each year folks.

ImUrHuckleberry
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Re: How much cash do you keep at any time on checking?

Post by ImUrHuckleberry » Wed Feb 28, 2018 6:46 pm

$47 right now but paychecks are hitting tomorrow and Friday. By next week balance will be down to about $100.

DrGoogle2017
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Re: How much cash do you keep at any time on checking?

Post by DrGoogle2017 » Wed Feb 28, 2018 7:19 pm

westrichj312 wrote:
Wed Feb 28, 2018 5:55 pm
you don't want to miss out on the 1% per year MM accounts you will be able to get a couple free pizza's each year folks.
That’s the point, we don’t eat pizza anymore. Bad for our health.

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cfs
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Re: How much cash do you keep at any time on checking?

Post by cfs » Wed Feb 28, 2018 7:23 pm

I have a checking, savings, and money market account with our credit union, approx 40 years doing business with the same credit union. In the checking account I keep enough to cover ALL our monthly bills, no bouncing due to having my savings account linked for overdraft protection. ALL the bills are in auto pay via ACH, so I do not write any checks with the exception of the quarterly check sent to Miss IRS. Good luck with your non-investable money management techniques, y gracias por leer ~cfs~
~ Member of the Active Retired Force since 2014 ~

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