Is It Bad That I Keep $0 In My Checking Account?
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- čas přidán 1. 12. 2022
- How much do you aim to keep in your checking account? Do you consider your checking account to be part of your emergency fund - or do you keep your emergency fund entirely separate in a savings account?
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#checking #personalfinance
I keep about $500 in checking. My emergency fund is in high yield savings and I can get to it in a couple days. I put everything I can on the credit card then pay the credit card on payday.
I like to keep my checking account above $1,500 at the end of the month. I feel really uncomfortable when it's under that because it's less of a cushion before having to tap into my emergency fund.
I use checking just to pay bills. Everything else goes to savings.
I used to keep my checking with a buffer as low as a few hundred dollars. After awhile it became more of a hassle so now I keep about a $2000 buffer which would cover my largest single bill, housing.
1. Enough to keep from paying a minimum balance fee. 2. Enough for all monthly expenses. 3. Enough to cover at least a $1000 emergency. 4. Enough to prevent over drafts. I really, really don't like having to withdraw money from savings and I avoid it if at all possible.
I keep 1000 dollars worth for bills and investing
Just enough to cover my monthly bills plus a little cushion. I can always transfer money from my savings.
I've actually switched from a checking account to the Fidelity cash management account and keep about 6 months of expenses. It simplifies my finances. The account has no fees, I can buy money market funds from the same account to get higher yields on cash and I can get FDIC insurance up to $1.25 million.
Most big bank checking accounts are 💩. I keep $500 in mine and the majority of my liquid cash in my HYSA, paying majority of my bills directly from there.
Erin, this is a good topic. While this is common sense for people with good money management habits, this is something that people who are just entering the workforce wouldn't necessarily know. The same is true for people with poor money management habits. Good job!
I try and keep around $1000 as well in my checking. I don’t pay a lot of attention to it but what I do is if that pay period there is an excess of money then I move most of it to my high yield savings. I can transfer back to my checking in a couple days so it’s never been a problem. I do find it interesting that you and your husband has separate accounts. We just have one but I handle all the finances. My wife just doesn’t have the time to do it as she’s a small business owner as well.
I agree 100% with you’re method. That doesn’t make sense to me to keep that much money in a checking account collecting very low to no interest. When you can put it in your savings account and just transfer it over if you really need it. Great video.
Since my bills come from my checking, I keep 2 months worth of average bills. So, I am covered for items like this years higher heating bills. One thing for people to be cautious about is if you use a debit card. My daughters use their debit card, which is tied to their checking account, so I tell them to keep the minimum amount in checking, even if that means moving money around more frequently, as fraudulent debit card purchases are not protected like credit cards.
I keep a fairly high amount in my checking account because for a long time I got the best interest there. It was one of those accounts that required 12 credit card purchases per month and one direct deposit to get the interest. But I took a lot of it out because my brokerage account now pays more. I had enough in there to buy my used car nearly 8 years ago.
We keep two months of expenses in checking so if we have any overages in the month there is some buffer. We're not "saving" that money - we're spending it. Liquid savings is in our high yield savings account. We're not looking to save cash - We're looking at it as insurance/opportunity money when we need it.
Thanks 🎉
Way too much, money in our checking but the good news is our olde fashion bank just changed our money market interest rate to 4% 😊 if you deposit 10k of new money! So our larger than should be checking will be going into MM.
We keep about a kilobuck cushion for our work horse checking account, and everything else in a savings and emergency accounts. We also budget about 3 months out and have a running forecast balance to keep everything in check. You also ought to consider a credit union as an alternative to typical banks. Great show Erin! 😊
Mine fluctuates but $1000 at end of month like you because of budget, never had a issue. I also use quicken where my expenses are 3 to 4 months in the future so I already know where money is going
Over the years all our income was automatically deposited into savings. Then we kept about $800 - $1000 in checking. As bills came due funds were transferred from savings to checking. We keep almost no cash on hand, $20 - $40 dollars each as we pay for everything with a credit card. We have credit cards that pay cash back or points and my wife makes a list of which cards to use for each location. One card for restaurants another for groceries and another for big box stores etc. This changes as different cards offer special rates for different locations. Special circumstances can also determine which card to use. We are going to Hawaii next year and used a CC that paid miles for the airline we use. We are flying for "free".