It depends on your budget and financial situation. By TIM PARKER Updated on November 2, 2022 Reviewed by KHADIJA KHARTIT Fact checked by YARILET PEREZ Everyone has a different opinion regarding the amount of cash you should keep in your bank account.
The truth is that it depends on how much money you have. The money for your regular bills, your discretionary spending, and the emergency fund portion of your savings must all be kept in the bank.
For day-to-day expenses, you should keep between $100 and $300 in cash in your wallet and approximately $1,000 in a safe at home.
Your budget sets the stage for everything else. It’s possible that you won’t have any money in your bank account if you don’t properly budget. Aren’t you on a budget? Now is the time to create one or improve on your previous planning. Here are some ideas for doing it.
Important takeaways: Your financial situation and savings objectives will determine how much cash you should keep in the bank. Having a budget is the first step.
Two popular budgeting strategies are Dave Ramsey’s method and the 50/30/20 rule.
Both provide a blueprint for allocating funds to regular bills, discretionary spending, and creating an emergency fund from savings.
