(Closed) Do you keep a "cushion" in your checking account?

posted 7 years ago in Money
Post # 62
Member
734 posts
Busy bee
  • Wedding: November 2007

We try to keep a cushion of $500 in our checking account at all times.

Post # 63
Member
13905 posts
Honey Beekeeper
  • Wedding: November 1999

I keep a sizeable cushion so I’m prepared in case of an emergency.  I don’t want to ever have to touch my savings, so I pretend that money just isn’t there.

Post # 64
Member
6114 posts
Bee Keeper
  • Wedding: August 2012

@Ninteenthchance:  Yes, we agreed to have a cushion of $5,000. 

I mention needed a new car in another post and that I wanted to spend $5,000.  Well it’s sitting there!  We just won’t want to touch the cushion.

I think budgeting to ZERO every month could pose some problems.

Post # 65
Member
10635 posts
Sugar Beekeeper
  • Wedding: January 2011

Yes.  For our banking package, we need to keep 5k to not be charged fees.  For a while we kept a minimum of 10k there, with occassionally going under that if a paycheque came a few days after rent.

Now, we’ve become more comfortable with less, but it’s usually in the 8-10k range, and never less than 7k.

Neither one of us spends extra money just because it’s available.  I would spend the same whether I kept a balance of 5k or 15k.

 

Post # 66
Member
2440 posts
Buzzing bee
  • Wedding: September 2013

We definately like to keep a cushion in our account!

Post # 67
Member
10635 posts
Sugar Beekeeper
  • Wedding: January 2011

View original reply
@pinkshoes:  That would tick me off!  Here, there are some savings accounts with higher interest where the # of transactions are limited, but you’re told that upfront.

Post # 68
Member
10635 posts
Sugar Beekeeper
  • Wedding: January 2011

View original reply
@QuirkySocialite:  A mistake where a transaction goes through twice.

Post # 69
Member
113 posts
Blushing bee
  • Wedding: November 2013

I use to have a bank account which charged $15 bucks a month in fees unless you had a balance over $3,000. So I did use to do that which acted as a cushion. But once I found a bank which didnt charge fees, i switched and consolidated my checking and savings accounts in order to secure more interest for my money. Now my cushion is maybe 200-500 depending on the month. Paying for a Wedding right now certinaly has eaten into that buffer. But If it starts to become exsesive then i will transfer anything over the $500 into my savings.

I think there are merrits to both ways of doing it, My SO is not that way at all though. He likes to keep all of his money in one account. Savings, spending, bills, everything.  We havent been able to agree on how to handle the money when the time comes to blend accounts. We might even keep everything seperate since i have my way, and he has his way if it aint broke …

Guess it just depends on what works for you both.

 

Post # 70
Member
1143 posts
Bumble bee
  • Wedding: June 2011

We don’t share a checking account, but for myself I have a set limit that I don’t like my checking to go below. I’m trying to rebuild my savings after an ex completely wiped it out when we lived together, so I don’t like to rely soley on that. Therefore, I know that I want to have at least x-amount in my checking just in case.

Post # 71
Member
287 posts
Helper bee
  • Wedding: May 2010

We keep a small cushion in checking($1000-$2000) and then transfer a set amount monthly and any excess to savings. I dont have much self control and if our checking account looks robust I will go shopping! I find a way to convince myself that clothing, purses and cosmetics are totally essential purchases. Not good. If I move money to savings I feel like I can’t touch it, which is good. 

Post # 72
Member
15062 posts
Honey Beekeeper
  • Wedding: June 2011

View original reply
@AB Bride: I’m pretty sure I was told, I knew of some limit, but I didn’t know exactly what would hapen if I hit that limit too often.  I could have just forgotten too since I don’t really pay attention to these details until it concerns me.

Post # 73
Member
698 posts
Busy bee
  • Wedding: September 2013

We always keep a minimum of $1,500 in our checking account, which covers automated bill payments throughout the month. For example, we’ll have $1,500, and then if our $450 insurance bill comes out, it would be down to $1,005.  With our next paycheck, we will top that back up to $1,500, and the remainder is transferred to savings.

Post # 74
Member
645 posts
Busy bee
  • Wedding: May 2010

Nope – our bank allows us to connect checking and savings so should we ever get too low it would automatically pull from savings, no fee unless it’s the second time in the same month, but we’ve never had this issue. We keep just enough in checking to cover expenses and bills, everything else goes into savings to earn interest.

Post # 75
Member
2890 posts
Sugar bee

@Ninteenthchance:  I don’t have much of a cushion, but I have a very detailed budget so for every pay I get, 80% or more is placed either is other accounts as savings or paying off debt. So my usual account doesn’t have cushion, but I have multiple accounts that have. 

Post # 76
Member
2268 posts
Buzzing bee

View original reply
@almostmrsj:  “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.

+1, we do it this way as well.

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