How much of a "cushion" do you leave in your checking account after paying bills | TigerDroppings.com

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TDsngumbo
LSU Fan
Member since Oct 2011
5463 posts

How much of a "cushion" do you leave in your checking account after paying bills



What amount of money do you leave in your checking account and pretend is not there for those just-in-case moments where you might need to get cash immediately?

I've always done $1,000 but I'm thinking about lowering it to $750.







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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19339 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Maybe $200, but that's just in case my math is fricked up somewhere.

Plus, I have various savings accounts for goal tracking, and since my phone can instantly transfer the money into checking, there is no need for it to be in checking. Its a technicality though.






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eng08
LSU Fan
Member since Jan 2013
2088 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Around $1,000 in case I screwed something up.





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Janky
LSU Fan
Team Primo
Member since Jun 2011
8310 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


I keep as little as possible so if my card gets stolen they can't spend all of my money. I move it to my savings or inactive checking and transfer as needed. Once that gets too big, I move it to my brokerage for investing. My wife's friend in BR got her wallet stolen at La madeline and they rang up $6k in gift cards. I will not let that happen to me.





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OnTheBrink
Alabama Fan
TN
Member since Mar 2012
3821 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Around $100-150. I run mine down at the end of the month by emptying extra's into Savings, Emergency/Vacation, etc.

My wife keeps about $1,500-2,000 however.






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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7775 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


I think this question is answered differently by people from various generations. I've found the late 40 somethings and older believe you have to keep at least enough money in savings/checking to live off of for 6 months should you lose your job.

I generally keep very little money in checking and savings for that matter. Having a surplus of cash is not maximizing your investments in my mind. Liquidity is important, but most savings accounts arent even keeping up with the rate of inflation. You are losing money by putting your reserves there. If I'm building cash then I increase my contributions to my tax sheltered retirment accounts or invest it.

I laugh a bit when I see guys talking about the $50K they have in savings thats earning less than 1% interest and the $30K they have in their IRA/401K. In my mind theres something terribly wrong with that picture...



This post was edited on 6/19 at 9:56 am


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BayouBengal
LSU Fan
München
Member since Nov 2003
26713 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


quote:

What amount of money do you leave in your checking account and pretend is not there for those just-in-case moments where you might need to get cash immediately?


In actual checking. I try not too leave too much. I move extra into my money market account. If an unexpected expense or big bill comes in I go online and transfer money into the checking account. I set up automatic transfers to my checking account the day before I have a bill scheduled to be paid.






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32525 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


5 k





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jimbeam
USA Fan
University of LSU
Member since Oct 2011
32086 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


All of my college money is in a checking account. Personal is in savings account.





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dewster
Maryland Fan
Member since Aug 2006
9095 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


$300

My budget is predicable though. I can estimate it within $100. I dump whatever difference I have after bills are paid into savings and investments.

Money in checking is not earning me anything and I have theft concerns.



This post was edited on 6/19 at 10:29 am


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Zach
LSU Fan
Member since May 2005
64413 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Right now it's $18K. Average is $22K. Had to pay the house painters two weeks ago.





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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Min of 10k just to get the max of my 3% reward checking and all ATM fees returned.





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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


I keep 10k





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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
10423 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


quote:

Min of 10k just to get the max of my 3% reward checking


What bank do you get 3% from?






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Motorboat
LSU Fan
At the camp
Member since Oct 2007
10464 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


About $15K





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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
40065 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


Neighbors FCU





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dewster
Maryland Fan
Member since Aug 2006
9095 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


If you don't mind my asking.....why so high? Do you have unpredictable expenses or lack a monthly budget?


This post was edited on 6/19 at 10:50 am


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Ace Midnight
LSU Fan
Currently asymptomatic
Member since Dec 2006
31037 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


quote:

I've always done $1,000 but I'm thinking about lowering it to $750.


If your emergency fund is in another account, $200 to $300 is a good cushion. More than that you'll just spend it on stuff you don't need and is a sign you're not saving enough.

IF you're housing your emergency fund in your checking account (which I don't recommend), you need $1200 to $1300.



This post was edited on 6/19 at 10:56 am


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KG6
LSU Fan
Member since Aug 2009
2594 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


I try to keep 5k in my account. I get 2% intrrest through a local bank so it's not that bad. Any more than that goes in investments or paying off te wife's student loans.





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jmtigers
Southern Miss Fan
1826.71 miles from USC
Member since Sep 2003
3632 posts

re: How much of a "cushion" do you leave in your checking account after paying bills


I live pay check to pay check... after investments and automatic savings transfers out to other accounts. So, at the moment the balance is under $200.





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