For a while now, I have been wondering how much cash is appropriate to hold. Given the seemingly-permanent low interest rate environment, and the inflation numbers, this topic has weighed on my mind a lot over the past few months. Financial planners say that 3-6 months of expenses should be kept in reserve as an emergency fund for unforeseen expenses, or as a buffer for a job loss. This is probably the right advice, but I have kept a larger proportion of my overall assets in cash than the baseline recommendations suggest.
What's the right amount of cash?
What's the right amount of cash?
What's the right amount of cash?
For a while now, I have been wondering how much cash is appropriate to hold. Given the seemingly-permanent low interest rate environment, and the inflation numbers, this topic has weighed on my mind a lot over the past few months. Financial planners say that 3-6 months of expenses should be kept in reserve as an emergency fund for unforeseen expenses, or as a buffer for a job loss. This is probably the right advice, but I have kept a larger proportion of my overall assets in cash than the baseline recommendations suggest.