Cash - How Much to Keep?

Eco_Miser

Aminatidi said:

Spending is usually £1400/month max so no I'm not dipping into savings the problem is literally having too much cash where I'm investing spare monthly cash but struggle with what bank balance to keep.

It's not a risk level thing I'd happily have almost all of it in "cautious" funds or trusts.

It's literally what level of directly accessible cash in the bank people are comfortable with v cash that takes some time to realise (even notice accounts fall into this category I guess).

When calculating how much immediate access cash you have, include unused credit card limits. You should be able to cash in investments before payment becomes due.

Personally, I had about five years expenses in higher interest cash accounts, acted as a non-volatile reserve as well as emergency fund (I'm retired), but investing some of it now.

Albermarle

acted as a non-volatile reserve

Yes cash seems to have become more popular as the non equity side of a portfolio , unrelated to holding so many months living expenses. Any cash in a fixed rate account set up earlier this year is also beating inflation quite easily for now.