How much cash do you like to keep in the bank these days just to feel comfortable? I was talking to a friend over the weekend, and it surprised me how different our answers were. We both have about a $5k mortgage, but she’s fine keeping around $1,000 in checking and just letting each paycheck cover expenses. I’m the opposite, I feel like I need closer to $30k there to really breathe easy in case of a big expense or layoff. Curious how other people think about it.

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I keep most money liquid in the market. That being said, in a pinch I’d like to have 6 months to a year readily available in case I lost my job.

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Yeah, I think 6 months is a pretty good benchmark. It feels like enough of a cushion to handle a layoff or something unexpected without being in full panic mode.

I keep as little as possible

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Interesting, why do you prefer to keep as little as possible if you dont mind sharing your rationale?

6 months of expenses if you can swing it. I don’t know that I’d keep it in a checking account, you could keep in a money market at the least and earn a little return.

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Yeah, 6 months feels like a pretty solid target. Good point too, I was thinking about it more as cash I want easy access to, but keeping at least part of that in a money market makes a lot of sense.

I had a nice chunk in the bank and then got laid off. Aside from a freelance type gig, I went through all of it. It’s been a year and I still haven’t found a good job. Now granted I’m in the manager/director type experience level so those jobs are harder to get. But I’d say more saved is better. This job market is no joke. It’s really bad.

That’s exactly the kind of situation that makes me lean toward keeping more saved. It’s easy for a cushion to feel like too much until something like a layoff happens and the timeline ends up being way longer than expected. Sorry you’ve had to go through that. This market really does seem especially rough at the manager/director level.

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I have 9k in the bank currently. But, I am working towards having more…like 6 mos. And a separate savings for health, emergency and household expenses, as that can set you back quite a bit, I learned that the hard way.

Yeah, that makes a lot of sense. I think having separate buckets for health, emergencies, and household stuff is smart too, those expenses can hit fast and throw everything off.

I like to keep at least $30k liquid

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