Do you keep a "cushion" in your checking account?

posted 3 years ago in Money
Post # 3
Member
1040 posts
Bumble bee
  • Wedding: July 2014

I keep a cushion of about $10,000 in my current account, anything over gets transferred to savings. I like having a back up in case of an emergency. I tend to live well within my means, so I don’t get tempted to cut into that cushion unless I really need to. 

Post # 4
Member
11668 posts
Sugar Beekeeper
  • Wedding: November 1999

@Ninteenthchance:  no I have overdraft protection For this reason. My money doesn’t earn interest in my checking account so I keep as little as possible in it. Make your money work for you!!

Post # 5
Member
3635 posts
Sugar bee
  • Wedding: May 2012

Yes, we always have at least $1,000.  Neither of us can be bothered to keep track of exactly to the penny what we’ve spent or how much the bills are.  We know if we have a bill that’s less than a couple hundred we can pay it and not worry about it.  A couple times a month we check to make sure we haven’t dipped too low and have transfers scheduled to cover all the bills that are due.

Overdraft feed are expensive and a huge waste of money if the money is just sitting in your savings.  Spend cash if you want to strictly control what you spend and put that tight of a limit on it.  You get $100 a week and that’s it, period.  That’s much easier (and more concrete when handing over a $20) than keeping track of every transaction.  Especially when you share an account!  You don’t want to end up with a $35 fee because he forgot to write down that he spend $5.47 on lunch and you thought you could put the last $37 in gas in the car.

Post # 6
Member
23 posts
Newbee

My bank account is no-fee unless my balance falls below 1500, so I try to keep it above that, and basically that 1500 is my cushion — so I have an incentive to leave the cushion alone, but if i dip in to it i’m only out like $4.

Post # 7
Member
4043 posts
Honey bee

@Ninteenthchance:  I keep a cushion of about $300 in my checking account and then I have $10k in savings. I don’t see the point of keeping too much in my checking because it is not earning interest. In checking I earn $11 a month in interest, which isn’t a ton of money, but it is better than nothing.

 

Post # 8
Member
2851 posts
Sugar bee
  • Wedding: May 2014

Not really. I am an avid user of my check book app and know exactly how much I have at all times. I keep any extra money that I don’t need for the month in my savings. If I have an emergency, I can transfer funds or use my credit card and pay it off with savings.

Post # 9
Member
247 posts
Helper bee
  • Wedding: June 2013

We always keep a cushion of at least a couple thousand dollars so we don’t actually bounce a check or something like that. 

Post # 10
Member
1768 posts
Buzzing bee
  • Wedding: June 2014

Ha! I wish I had the money to keep a cushion in my checking account! I save a lot for retirement (IRS max) and have money in an easy-access savings account, but generally I only have maybe $100 in my checking account when I get paid (and that’s on a good week!).

 

I can’t imagine having thousands (or heck, even a thousand) dollars just sitting in there – unless it’s one of those rare interest-earning checking accounts, that’s just silly!

Post # 11
Member
2209 posts
Buzzing bee
  • Wedding: May 2014

@StL.Ashley:  +1 on your second paragraph!

I keep a ~$100 cushion in my checking.  There’s no point in leaving extra money in my checking account, which has even more terrible of an interest rate than my savings.  If I have additional expenses above what I’m expecting, I just transfer some back from a short term savings account.  I have a few different sub savings accounts to save for different things.

Post # 12
Member
3280 posts
Sugar bee
  • Wedding: June 2014

We keep several thousand in checking for a cushion. It’s our emergency money since we are not touching our savings for many years. We typically end up with a lot more above our cushion but once we get close to that cushion range we don’t spend anymore. 

Post # 13
Member
2878 posts
Sugar bee
  • Wedding: August 2013

Yes, I keep a cushion of a couple thousand in my checking account.  Its way too scary to have almost nothing left in there at the end of the month.  It doesn’t make me spend more; I know what my budget is and I stick to it.

Post # 14
Member
320 posts
Helper bee
  • Wedding: October 2014 - Restaurant

I keep my savings completely seperate from the checking account, so I usually like to have about $200 in there as a cushion. 

Enough for a little fun if it comes up, but not enough that I could blow without thinking it over long enough to transfer money from savings.

I seriously love Excel though and always know how much is in there at all times.

Post # 15
Member
1888 posts
Buzzing bee
  • Wedding: August 2014

@Ninteenthchance:  I really try, but when I lost my job my cushion disappeared.  One of the main reasons I want to get a job is so that I can have that cushion again. Living on the razor’s edge is just too stressful.

Post # 16
Member
1414 posts
Bumble bee
  • Wedding: February 2009

It’s rare if we do. Usually if we have extra money in the checking we put a good chunk of it into our savings account or our Roth IRA. That way we don’t just spend money cuz it’s in the checking account. It’s worked well for us. 

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