Peace77
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Post by Peace77 on Feb 18, 2011 23:06:31 GMT -5
Most checking accounts pay little to no interest so this poster figures you would lose about $10 in interest.
What you could do is subtract your cushion in your check register and try to forget about it. For example if your next deposit is $1900 write down $1400 and subtract your expenses from there.
This will cover you in case of error, math goof, bank foul up, etc.
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kansasflower
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Post by kansasflower on Feb 19, 2011 10:12:40 GMT -5
I keep a cushion of two months of expenses. In the event of a job loss, that would give us ample time to cash in stocks to cover the bills.
My checking account requires a $4,500 min average daily balance to get interest. I also get reimbursed those pesky atm fees (up to 6 per month) charged when using a foreign atm. Lately, the atm fee reimbursements have been much more than the interest earned.
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Deleted
Joined: May 18, 2024 3:38:43 GMT -5
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Post by Deleted on Feb 19, 2011 14:59:33 GMT -5
It's not only you that can make an error. The bank can make an error on your account too. Just recently heard about an error was a deposit was put into the wrong account. Fortunately, the owner of the wrong account noticed and pointed it out to the bank. That would be caught at the window, when I receive my deposit slip.
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blackcard
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As of April 2013 Mortgage is paid in full :) NO debt of any kind.
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Post by blackcard on Feb 19, 2011 21:05:57 GMT -5
We are up to about 8 months living expenses as extra in checking, we count this as our EF. We still contribute extra money to it every month. This does not include our long term savings, cash on hand, or investments.
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formerexpat
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Post by formerexpat on Feb 19, 2011 23:19:49 GMT -5
By the very nature of it, it would have to be included in the "cash on hand" figure. Unless you don't consider money in your checking account as "on hand"? [/size]
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Small Biz Owner
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Post by Small Biz Owner on Feb 20, 2011 9:16:08 GMT -5
Considering how she phrased it, I dont consider money in checking as cash on hand either.
Cash on hand to me, is exactly that, literally on hand. Cash I can put my hands on 24/7
Considering the nature of business, quite a bit of extra cash in our checking accounts. Around 25K
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sapphire12
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Post by sapphire12 on Feb 21, 2011 18:59:04 GMT -5
Zero. Extra money is in savings, which can be accessed just as easily as if it were in the no-interest bearing checking accts that I own. This is not to say that my checking acct(s) have a zero balance come pay day, just that none of the money in checking is "extra"; I just haven't spent it yet.
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blackcard
Familiar Member
As of April 2013 Mortgage is paid in full :) NO debt of any kind.
Joined: Dec 23, 2010 22:06:57 GMT -5
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Post by blackcard on Feb 21, 2011 19:13:15 GMT -5
<<Unless you don't consider money in your checking as "on hand"?>>
We don't consider checking as cash on hand. Checking requires going to the bank for a transaction, or the willingness of someone to accept the check. Our cash on hand, is actual cash in house, we have access to anytime.
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Peace Of Mind
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[font color="#8f2520"]~ Drinks Well With Others ~[/font]
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Post by Peace Of Mind on Feb 21, 2011 19:26:49 GMT -5
I always keep an extra $1,500 to $2,500 in our checking account. Banks make errors, and DH's paycheck is automatically deposited - which has been screwed up once or twice. Also our bills are due sometimes before his check is deposited and I don't care to be late on paying bills. And there is that very rare chance that I could screw up. I never have yet, but it could happen! When it starts getting too high we put all extra in our MMA.
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formerexpat
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Post by formerexpat on Feb 21, 2011 21:26:54 GMT -5
I have plenty of other options that allow me to spend the cash that is in my checking. Again, I just find it odd for people to have stashes of cash in the home [2% of what $200k = $4k ish?] unless they're operating a business that receives cash and the owners keep it in home to keep it out of the eyes of the IRS, and avoid taxation. [/size]
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blackcard
Familiar Member
As of April 2013 Mortgage is paid in full :) NO debt of any kind.
Joined: Dec 23, 2010 22:06:57 GMT -5
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Post by blackcard on Feb 21, 2011 21:46:34 GMT -5
formerexpat, you sure are fixated on our cash. Need a loan?
Actually right at $5K, if you need to know. We live in a hurricane zone. Last hurricane, no ATM's or banks open for days. All transactions for food, fuel, property repairs required cash.
Yes, we have a side business. No, it does not require cash on hand. Yes, I resent your insinuative attempt, that we would in any way try to avoid paying our taxes.
Guess you just have a problem with savers?
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ilovedolphins
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Post by ilovedolphins on Feb 21, 2011 21:50:39 GMT -5
I honestly would never think of people who have cash in their house are trying to avoid taxes. Most people I know just want to have it on hand for an emergency.
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blackcard
Familiar Member
As of April 2013 Mortgage is paid in full :) NO debt of any kind.
Joined: Dec 23, 2010 22:06:57 GMT -5
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Post by blackcard on Feb 21, 2011 21:52:35 GMT -5
ilovedolphins, thank you, someone who GETS IT! karna 4 U
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ilovedolphins
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Post by ilovedolphins on Feb 21, 2011 21:56:02 GMT -5
No problem, us savers have to stick together.
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formerexpat
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Post by formerexpat on Feb 21, 2011 22:38:42 GMT -5
The irony of you resenting someone insinuating things.
If you're offering a loan; would you give it at 6 mth LIBOR fixed? I'll even give you a 50 bps spread above the current 6 mth LIBOR. That's likely more than you're earning in your checking/savings account. What duration would you offer? I'm all about spread management and if you're going to waste all that cash sitting in negative yielding vehicles, then someone other than the bank might as well take advantage of it. We're the same age, so we could go a long duration.
I'll even let you think I've got a problem with saving if that makes you feel better. I wouldn't want to burst your bubble and let you know that there are other, young financially successful couples that can achieve what you and your husband can on one income instead of four.
Makes more sense now; I guess it's water proof and up high to avoid the impact of a hurricane? I guess that's typical for homes in your area? Sorry if someone in the NE that doesn't deal with these types of natural disasters and generally only sees hoards of cash by people operating businesses with at least some volume of cash transactions asks follow up questions to better understand. [/size]
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TD2K
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Once you kill a cow, you gotta make a burger
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Post by TD2K on Feb 22, 2011 0:14:28 GMT -5
I try to keep a few hundred in case I forget to record a withdrawl but I've done down to less than $50. And yes, I was hoping I had done the math right.
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