How much $$$ should you keep in your checking/savings account before putting the rest in investments, stocks?

Question

Do you know what is approximately a normal amount of money to have in your savings/checking account?

I think lots of people don't like to keep much cash available in a savings/checking account -- instead they prefer to put it in investments like stocks, bonds, mutual funds, retirement plans, etc.

But you still have to have some spending money available, of course, so I was wondering what's an average amount to have? Do you have any idea?

Answer 1

A professional financial planner would likely tell you to have 3-6 months worth of normal expenses in reserve. (I keep at least six months worth.) You never know if something unforeseen may happen such as an accident or layoff. A cash reserve will help you get through those tough times. (I've been laid off three times in six years, so I can tell you from experience how invaluable this can be!)

If you don't have cash reserves, an emergency could force you to sell stocks at a loss if you need the money during a downturn in the market.

Answer 2

At least a month's budget, including cash expenditures and misc.
If you invest in vehicles that you cannot access for emergencies, then consider the term of those and reserve enough over that amount of time. A savings account should be used.

Answer 3

distinctive states have distinctive regulations approximately debt and approximately property concerns. in case you're married regularly your companion will pay. in case you're no longer married then all you cash owed would be settled by potential of your homestead. in case you very own property then your borrowers will come after your homestead to objective and get their money decrease back. in case you very own no longer something then there's no longer plenty they are able to do. although in case you have the credit status for an limitless credit card i might assume you have some style of property. particularly you would be growing to be a great mess for whomever is left in the back of to look after your affairs (no remember if that be a determine, companion, sibling, good buddy, your lawyer, etc.). in case you have genuinely no person to place with the aid of this and no property there's no longer plenty your lenders can do once you're lifeless. basically ensure you're particularly going to die. My uncle exchange into given 3 months to stay, has a radical, final hazard surgical operation, and 15 yrs later remains going reliable.

Answer 4

I'd say six months worth of expenses is the minimum.