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How Much is Too Much in the Checking Account?

June 7th, 2019 at 01:39 am

Checked my account and the bank credited me the interest charged on CC8, and Iโ€™m back to a zero balance ๐Ÿ˜ƒ

Wow, Iโ€™m still in shock that the interest was adjusted and Iโ€™ve paid off nine credit cards ๐Ÿ’ณ

I also checked other accounts, I mailed off my two month HOA payment Monday, and the check cleared already. Iโ€™m also shocked at how quickly that occurred. I still have about $174 left in my cash envy until pay day, and my checking account has just over $400.

Iโ€™m curious how much do you keep in your checking account as a buffer goes? I think Dave says we should zero base our budgets. Each pay period I allocate $10 to my checking for budget items I may have forgotten about and other surprises like the $13.20 lab ๐Ÿงช invoice I received. Iโ€™m thinking about throwing $200 at CC10

9 Responses to “How Much is Too Much in the Checking Account?”

  1. creditcardfree Says:

    I think a $400 cushion is good, but you do have emergency funds to cover if you needed to move money. So if you feel you have an extra $200, then yes, send it to debt! We have a couple thousand in our checking account honestly, but it's always flowing in and out and that's what I feel comfortable with at this point in time. And we use credit cards primarily, so I guess I'm never really at risk of overdrafting, which is the main reason to keep a cushion. It's hard to overdraft if you are keeping good track of money going in and out of your account.

  2. CB in the City Says:

    Sometimes my checking account gets pretty high (more than $1K) but I often don't transfer to savings because big expenses come up and I don't want to play back and forth. I agree with CCF that around $400 is good. Keeping a lower amount in there will keep you switching all the time. Bear in mind I am not paying off debt, so it's savings, whether it's in the actual account or not.

  3. Wink Says:

    I typically keep a $500 cushion in checking just in case. I checked it this morning and realized the cushion was just over 1k, so I transferred $500 to savings. I'm also not paying off any debt, so like CB...it's really just all savings.

  4. fireandi Says:

    I think of the zero based budget as having all your money allocated. It doesn't have to bring your bank account to zero. I generally keep a cushion of $500 in there. It feels good knowing that it's there in case there is something unexpected that happens or I have to buy something that I didn't budget for. I rarely use it, but it certainly has come in handy at times.

  5. crazyliblady Says:

    I keep a couple of hundred cushion in checking, but that tends to dwindle to almost nothing by the time payday arrives. I also have a mini savings account that I call my slush account and is great for unexpected or mini emergency items that I didn't know to budget for. There is usually at least a hundred there.

  6. crazyliblady Says:

    As for medical stuff, have you ever tried an FSA or HSA account? I have found them to be a definite budget saver.

  7. crazyliblady Says:

    Also, if I find right before payday that I have a surplus, however much it is, I send it to cc payoff.

  8. Amber Says:

    Thanks, I think Iโ€™ll keep the cushion at $400-$500.
    I do have the HSA but I figured for $13, Iโ€™ll just pay it.

  9. LuckyRobin Says:

    I keep a $100 cushion, but I also have it linked up so that if for some reason I didn't have enough money in there it would automatically transfer money from my savings account to my checking account. I've not needed to use that in years, but it is nice to know it is there. If I didn't have that, I'd keep $500 in there.

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