Comments on: How Much Should You Have In Your Checking Account? http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/ Money Saving Insights: Coupons, Smart Spending and Promotional Codes Mon, 13 Feb 2012 05:38:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: YYC http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39534 YYC Tue, 30 Mar 2010 22:36:39 +0000 http://frugaldad.com/?p=4452#comment-39534 My cushion for my chequing account is $100. Every pay day, I take a look at the expenses coming due in the next two weeks, and make a transfer in, or transfer out, so that my ending balance will be $100. Most of my purchases are on credit card, so that amount easily covers any sundry items I want to put on debit, or if I need to get a roll of loonies for the laundry machine. Money not needed for immediate bills is sent first to my regular savings account (if its balance is under $1,000), and next to my TFSA. My cash flow is such that the majority of the time, I'm sending money off to the TFSA. I haven't yet had to pull money back from there. My cushion for my chequing account is $100.

Every pay day, I take a look at the expenses coming due in the next two weeks, and make a transfer in, or transfer out, so that my ending balance will be $100. Most of my purchases are on credit card, so that amount easily covers any sundry items I want to put on debit, or if I need to get a roll of loonies for the laundry machine.

Money not needed for immediate bills is sent first to my regular savings account (if its balance is under $1,000), and next to my TFSA. My cash flow is such that the majority of the time, I’m sending money off to the TFSA. I haven’t yet had to pull money back from there.

]]> By: MomsManyProjects http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39352 MomsManyProjects Wed, 24 Mar 2010 14:40:07 +0000 http://frugaldad.com/?p=4452#comment-39352 Under normal circumstances we keep about $200 extra in our checking account. The rest goes into our emergency fund or as extra to pay off debt. If we spend less than expected during the month, then anything over the $200 goes towards debt payoff. Unfortunately, circumstances have not been normal since my husband lost his job in October 2009, so we had much more in our checking for quick access to pay the bills. Thankfully, he starts a new job in April and we'll be going back to our usual practices! Yay! Under normal circumstances we keep about $200 extra in our checking account. The rest goes into our emergency fund or as extra to pay off debt. If we spend less than expected during the month, then anything over the $200 goes towards debt payoff.

Unfortunately, circumstances have not been normal since my husband lost his job in October 2009, so we had much more in our checking for quick access to pay the bills. Thankfully, he starts a new job in April and we’ll be going back to our usual practices! Yay!

]]> By: Kika http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39326 Kika Tue, 23 Mar 2010 21:49:04 +0000 http://frugaldad.com/?p=4452#comment-39326 We keep a $400 cushion in the checking account; there is usually more than that in it, though. We keep a $400 cushion in the checking account; there is usually more than that in it, though.

]]> By: Len Penzo http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39249 Len Penzo Sat, 20 Mar 2010 00:23:29 +0000 http://frugaldad.com/?p=4452#comment-39249 I don't have a hard and fast rule, but I always get a bit nervous if the number dips below $100. Thanks for including my post, Dad! ;-) All the best, Len Len Penzo dot Com I don’t have a hard and fast rule, but I always get a bit nervous if the number dips below $100.

Thanks for including my post, Dad! ;-)

All the best,

Len
Len Penzo dot Com

]]> By: Becky R http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39219 Becky R Fri, 19 Mar 2010 14:12:02 +0000 http://frugaldad.com/?p=4452#comment-39219 I don't usually keep a cushion in my checking account. I don't usually have any problems. I balance my check book to the penny and know what I have in there. I try to spend cash on stuff I can't send a check too, so I don't have to worry about forgetting to subtract a withdrawal. Also I don't pay bills with checks until everything I have deposited clears. I actually wait ten days for most checks I deposit to clear (I have had clients checks bounce.) This really saves me. The bank will make funds from a check available, but if it bounces will take that advance back and charge you a fee as well, so if you wrote a check on that money it is your fault, that is why I wait the ten day now. I keep my emergency fund and savings in ING, I find they have the best interest rate. In addition I have three checking accounts: my business account (I am self employed) my personal account my freedom account All these are at separate banks so I can't transfer money from one account to another, it helps me to keep things separate easier. It may sound a bit crazy, but I have no debt (except my motgage), have $1,000 emergency fund, have money to get my roof replaced, and $9,000 to live for next 9 months (in case I don't work since I am self employed.) I also put 20% down on a house I bought in Nov. God is so good! I don’t usually keep a cushion in my checking account. I don’t usually have any problems. I balance my check book to the penny and know what I have in there.

I try to spend cash on stuff I can’t send a check too, so I don’t have to worry about forgetting to subtract a withdrawal.

Also I don’t pay bills with checks until everything I have deposited clears. I actually wait ten days for most checks I deposit to clear (I have had clients checks bounce.) This really saves me.
The bank will make funds from a check available, but if it bounces will take that advance back and charge you a fee as well, so if you wrote a check on that money it is your fault, that is why I wait the ten day now.

I keep my emergency fund and savings in ING, I find they have the best interest rate. In addition I have three checking accounts:
my business account (I am self employed)
my personal account
my freedom account

All these are at separate banks so I can’t transfer money from one account to another, it helps me to keep things separate easier. It may sound a bit crazy, but I have no debt (except my motgage), have $1,000 emergency fund, have money to get my roof replaced, and $9,000 to live for next 9 months (in case I don’t work since I am self employed.)

I also put 20% down on a house I bought in Nov.

God is so good!

]]> By: Miss T http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39216 Miss T Fri, 19 Mar 2010 13:34:22 +0000 http://frugaldad.com/?p=4452#comment-39216 My husband and I practice this on a regular basis. It really helps keep our savings on track as well as our spending. On those months when we have had bonus we usually shift it to our recreation savings. It is amazing what we have been able to buy using cash due to this. Thanks for a great post! My husband and I practice this on a regular basis. It really helps keep our savings on track as well as our spending. On those months when we have had bonus we usually shift it to our recreation savings. It is amazing what we have been able to buy using cash due to this. Thanks for a great post!

]]> By: Forest http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39199 Forest Fri, 19 Mar 2010 10:30:46 +0000 http://frugaldad.com/?p=4452#comment-39199 I am starting this idea at about $200 but hope to increase to $500 after a few months and finally start getting some savings behind me too. Thanks for the roundup as always. I am starting this idea at about $200 but hope to increase to $500 after a few months and finally start getting some savings behind me too.

Thanks for the roundup as always.

]]> By: Christina http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39188 Christina Fri, 19 Mar 2010 04:01:09 +0000 http://frugaldad.com/?p=4452#comment-39188 I don't have any specific cushion, instead all the savings I had for the monthly bills, I kept it there. Aside from the SA I have. It serves dual purpose for, for paying bills and emergency fund. The SA, that's what I really don't spend. I don’t have any specific cushion, instead all the savings I had for the monthly bills, I kept it there. Aside from the SA I have. It serves dual purpose for, for paying bills and emergency fund. The SA, that’s what I really don’t spend.

]]> By: Jackie http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39187 Jackie Fri, 19 Mar 2010 03:35:04 +0000 http://frugaldad.com/?p=4452#comment-39187 I just keep it above zero, and that's fine for me. (So no specific cushion.) I just keep it above zero, and that’s fine for me. (So no specific cushion.)

]]> By: Financial Samurai http://frugaldad.com/2010/03/18/how-much-checking-account-cushion-do-you-have/#comment-39186 Financial Samurai Fri, 19 Mar 2010 03:30:58 +0000 http://frugaldad.com/?p=4452#comment-39186 I try and keep as close to $0 as possible at any given point in my checking. $0 in the sense that after expenses, it goes down to $0 for the majority of the month. Thanks for highlighting my martyr article! Best, Sam I try and keep as close to $0 as possible at any given point in my checking. $0 in the sense that after expenses, it goes down to $0 for the majority of the month.

Thanks for highlighting my martyr article!

Best, Sam

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