As a financial planner, my clients often ask how much cash they should have on hand in their bank accounts.
I recommend keeping enough to cover your expenses, plus any cash you may need in the next five years.
For cash you'll need in 10 years (but less than 20), I tell my clients to invest it — a savings account will lose value over time.
How much cash you need on hand right nowThe first thing you need to account for is your normal, month-to-month living expenses and spending.
The only extra cash you need sitting around for this need might be a small buffer in your checking account to guard against accidental overdrafts.
Persons:
it's, shouldn't
Organizations:
Service, Vanguard, Fidelity
Locations:
Wall, Silicon