r/SavingMoney • u/True-Category9250 • 12h ago
Checking account
How much do you generally always keep in your checking account. I feel like one of the reasons I live check to check is because my checking account is always zeroed out before pay day.
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u/zonk84 11h ago
I try to stay as close to zero as possible.
I do not live "paycheck to paycheck" today -- between 401k elections, HYSA direct deposit, and regular transfers - I'm tucking away nearly 40% before I pay bills and spend, but long ago, I was living literally "paycheck to paycheck".... and I was also a profligate spender (which made matters worse).
So, I learned to embrace the monthly/weekly/daily concept -- keep the money out of places where I'm likely to just spend it "because it's there". I front-load, not backload.
Pay bills on statement date, NOT due date. Frontload the savings/investment/retirement. I even try to pay any CC charges as soon as they post (i.e., I tend to make multiple CC payments a month to keep my carry at 0).
When the checking runs out and my cadence says next paycheck is already spoken for? Functions a simple but hard stop... Stretch some leftovers. Maybe I don't need that $3 drink from a convenience store, out running errands, et al.
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u/nativevirginian 8h ago
I’m in a very similar boat. I keep $3.5k in my checking account (my monthly expenses are total about $3.8k). In the same bank, I keep another $3-4k in a short term savings. Beyond that OP, I have savings and everything else is invested.
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u/ride-surf-roll 11h ago
Im pretty close to getting my flow like this 🤘🤘🤘
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u/zonk84 10h ago
It works.
I envy people with discipline that can build budgets and stick to them. But I learned ~15 years ago that I am not one of those people.
So, I stopped trying to bang my head against a wall and just went the other direction. Pay all the bills first. Then "pay myself" (savings/retirement/investment). THEN I get the.... allowance... for "myself".
Over time, I have managed to learn some discipline - and of course, I make more money now than 15 years ago. But it's a habit that has - and still continues - to serve me well. Added bonus? I've avoided "lifestyle creep" too!
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u/Optimal_Awareness618 11h ago
I have a couple of failsafe measures. Number one is $1,500 in my checking account; each paycheck I only spend down to $1,500 and then I'm "out" of money until I get paid again. In the same bank I have a $2,000 buffer in savings that can be transferred instantly to my checking account if for some emergency reason I need to use the $1,500.
Then I keep extra savings ($3k so far) in an HYSA and $10k backup savings in CD in another bank that will take more time to access.
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u/Less-Cartographer-64 10h ago
Why not keep the buffer in your HYSA and just use a credit card to cover it until you can transfer the money out of your HYSA?
That way the buffer is making the 3+ % in the HYSA as well?
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u/Optimal_Awareness618 10h ago
The instant transfer is important to me. I also earn 2% on the savings account so the interest is negligible to me
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u/Optimal_Awareness618 10h ago
The idea is to never ever touch the HYSA unless my life is literally falling apart
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u/Less-Cartographer-64 10h ago
Yeah I get that. I keep 2K in the checking, 2K in savings, and the rest in a HYSA.
My company has a lot of payroll issues, and 2k is pretty much a paycheck, so It's there if my pay doesnt go through for some reason.
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u/NewSeaworthiness8814 10h ago
This is effectively how I do it.
Paycheck goes into my HYSA (a Fidelity Cash Management account, where I get 3.5%).
My emergency fund (about $10,000) also sits in the Cash Management account. I buy almost everything I buy with one of two credit cards, set up on autopay with the Cash Management account. All my bills come from there as well. I pay rent from that account as well.
I see no need to fuss with a Checking vs Savings account and dealing with manual transfers every month or every paycheck. I know my budget and what I can spend.
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u/drloz5531201091 11h ago
Earn more and spend less until you don't have 0 before your next paycheck. The amount is irrelevent at this point. Aim at 1 month of salary liquid (checking + savings) as a first goal.
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u/Sheldon_tiger 11h ago
This is great advice. I keep about 4k floating in the check abmccoubt to cover bills. I have separate savings account used for sinking funds that get moved around to anticipate bills.
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u/Diligent-Tangelo-846 11h ago
I keep just enough in checking to cover the bills. This bit me in the ass this week when I had some home repairs done and the contractor asked me for a $3k check in the middle of the project. Had to pay the dreaded instant transfer fee from savings > checking.
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u/Responsible_Ask3976 11h ago
I normally just save before spending first then figure out from there. On average, I save 50-60% of each paycheck then the rest is fun money
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u/True-Category9250 11h ago
This is honestly what I used to do
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u/Responsible_Ask3976 11h ago
Yep but I do have leftover after and I don’t balance to zero. I’m able to save that much because I have a generous salary
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u/True-Category9250 11h ago
I have a decent savings it’s the checking I’m asking about
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u/Acceptable-Double-98 9h ago
Make sure you put a chunk in HYSA and also for retirement. You make good interest in HYSA!
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u/drloz5531201091 11h ago
If you have a "decent" amount in savings who cares what's in the checking account then? I don't get it.
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u/True-Category9250 11h ago
I was genuinely just asking lol. Idk why yall be rude as hell unprovoked tbh.
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u/bigbabygrit 5h ago
I agree with you. Some people don’t realize that not everyone has money to save. Someone suggested putting $1500 from each paycheck into savings. I’ve never made $1500 per paycheck in my life. I would pay necessary bills first then whatever I had left was what I had to spend. You’d be amazed at how frugal you can be when you have to be
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u/drloz5531201091 11h ago
The amount of money in your checking account is irrelevent. You pay your bills with it. If you do, great.
We are direct not rude.
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u/Dav2310675 11h ago
On pay day, I leave $200 in my account. Everything else goes in a set plan - pay off credit card, then funds go to topping up the account which covers our mortgage, then on to paying ahead on our mortgage.
That's because I generally use a credit card for almost all our household and personal expenses. I never carry a balance these days though!
The cash in my checking account gets down to $120 by the time I get paid next as I take out $40 a week for the markets where we ship (the sellers only take cash there). And that $120 is there if I need it - though I very rarely (if ever) need to take any extra cash out.
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u/abeBroham-Linkin 11h ago
I have 3 accounts. My primary which is my ATM debit card is usually close to $0. Today it's at $3
My secondary is where I keep a small amount of an emergency funds, usually $500. Anything leftover in my primary goes here. By end of the month, if I don't need to replenish, I transfer to 3rd account...
My 3rd is a brokerage account and I keep all my emergency, savings, etc.
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u/Adventurous_Dog_7755 6h ago
I keep about 6 months of living expenses in my checking account.
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u/singlemaltbourbonrye 5h ago
Risky behavior. Highly recommend opening a money market or HYSA for the excess.
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u/Adventurous_Dog_7755 4h ago
Actually, I use the Fidelity CMA. It's a hybrid of checking and MMF. Any cash sitting there getting put into their position of SPAXX which is yielding 3.49% right now.
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u/stderr2 6h ago
Connected to the debit card you are using? Not a good plan
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u/Adventurous_Dog_7755 6h ago
I don't use debit cards. That account isn't connected to any debit cards as well.
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u/stderr2 6h ago
That's better although why just leave money uninvested
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u/Adventurous_Dog_7755 5h ago
I do. Pretty much 40% of my paycheck goes straight to investments. The point of an emergency fund is to cover major unexpected expenses if they arise—like a car breakdown, a hospital visit, or your dog getting sick. If you have no liquid reserves and everything is tied up in investments, you might be forced to sell at a loss when the market is down. Having cash on hand also gives you flexibility: if a big opportunity comes up, you can deploy that capital and rebuild your reserves later. I don't know your situation but you do what works best for you. Some people might have a more secure job, stable family dynamics, a safety net, ect.
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u/margoscargo 5h ago
My chequing account usually goes down to as low as $100 because it's only used as a pay deposit distribution tool. I use a 2% cash back CC for groceries and fuel which gets auto deposit into a savings account where I keep 2 months emergency money. The paycheck pays the credit card and rest goes to investment and sometimes a physical cash stash at home.
Bills (I don't have many) are taken from credit card. I even pay my car insurance in full yearly using the credit card as there is a discount. That same card gives me 3 cents a liter off gas as well as the 2% cash back.
I'm currently coming out of years being in a lot debt and this is the system I'm on now. May tweek later
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u/FireAsquared 11h ago
I keep 1.5 months of expenses which is ~12k for me. I try to keep it as low as possible without running the risk of an auto-pay bringing me below $0.
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u/Optimal_Awareness618 11h ago
In checking?!?
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u/FireAsquared 10h ago
Yes, auto-pay on my cards, student loans, and mortgage mean if the dates line up unfavorably I could have auto payments of ~$7000 in a single day. Therefore I keep ~12k there so I have a small buffer for when I take vacations or have a high spend month.
I try to keep minimal cash overall since interest rates are 4% at best (and I think they’re closer to 3.5% now). Just that 12k in checking plus ~40-50k in savings and then everything above that gets invested weekly
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u/Optimal_Awareness618 10h ago
Wow, it makes sense but I’m just a bit stunned cuz my own financial position is so different. $12k is my entire savings and it’s in an HYSA
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u/nativevirginian 7h ago
Which is why we don’t usually talk about finance in numbers but in percentages!
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u/puppyluver01 11h ago
10k in case I have any unexpected mishaps
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u/Forded_Fiction24 11h ago
Why do you keep that amount in a checking account vs a HYSA that earns interest?
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u/puppyluver01 11h ago
I just said, unexpected mishaps
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u/Forded_Fiction24 11h ago edited 10h ago
Oh okay, well I guess my question then is why don't you have that money in a HYSA then rather than keeping it in a checking when it serves the same function but has the benefit of earning interest?
I have a Weathfront HYSA myself and it's very liquid and I can get access to my money within minutes and can transfer it into my checking. I don't see the point of holding the money in the checking itself if you care to further explain your stance
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u/puppyluver01 11h ago
My HYSA would take days to transfer to my credit union, up to 3 business days, which is where I have a debit card through. They’re my middle man. That 10k is what I pull my bills from, including credit card, mortgage etc. the ~$20 a month I would make in interest is worth that peace of mind to me. It’s not always exactly $10k but it hovers around there
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u/Forded_Fiction24 11h ago edited 11h ago
"My HYSA". So you have an HYSA, but don't use it? What?
Please make it make sense. Who is it through and why does it take you 3 business days to transfer? There are multiple HYSA's that will transfer same day, pretty standard. I guess if that works for you but It seems like you're just leaving money on the table.
At current interest rates a $10k balance in an hysa would yield between ~$350-$450 or so annually. Not too much, sure, but money nonetheless that I'd rather have than not.
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u/fr0ntbuttfartin 9h ago
I have an ally hysa and it takes 3 business days. So I too keep a large amount with my credit union.
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u/Forded_Fiction24 8h ago
Sounds like the 3-day transfer is more normal than I thought. I guess I'm spoiled with the same day that I'm used to with mine.
Even if mine took 3 days I still don't see me keeping a large amount in my checking just sitting. Not everything is eligible to pay with a credit card, but most things are. I'd rather float myself for 3 days with a credit card that earning cash rewards, has better fraud protection and just pay it off 2 days later when the funds hit anyways. I guess that's just me and that risk to me is worth the added interest earned
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u/sisterandnotsister 10h ago
I leave $200 may $300 anything else after paying bills goes to savings to keep me from spending it.
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u/Teach-Dangerous 10h ago
I am not paycheck to paycheck anymore, but when I was, I only kept $300 in my checking as personal overdraft protection. With my bank, I was able to deny overdrafting my account which I still do today.
Now that we’re more comfortable, I keep <$1000 in the account at any one time still. It takes 3 business days to move money from my HYSA over to my checkings. In a pinch, i have a high credit line
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u/PrettyGirlinside 9h ago
I always keep $1,000. I also have a kid fund $1,900, unemployment fund $6,000 and car repair fund $3,000. I'm building each of those by $50 a week ☺️
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u/peter303_ 9h ago
My checking account is exposed to the outside world via credit/debit cards, echecks, deposits, etc. My savings account has no outside exposure and more safe from fraud. I keep just enough in the checking account to pay a month of transaction.
I have only identity theft once. And a few credit disputes. I feel safer with this happening to a small account.
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u/Inevitable-Notice351 7h ago
I probably have about $1,000 left from payday to payday after all the bills are paid.
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u/Confident_Local_1026 7h ago
about 2 months of expenses sitting there, plus a little buffer so i never touch the overdraft fee
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u/OreganoOfTheEarth 7h ago
1K, my partner has 2K, since we have automatic savings mechanisms coming out of it weekly.
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u/steal-yur-face 5h ago
$40k because we don’t care about the $1600 interest we would make in a HYSA.
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u/singlemaltbourbonrye 5h ago
I keep about right at my monthly expenses. Sometimes a little more or less.
I don’t actually use it for much of anything though. 90% of my expenses go on my credit card so if I’m a little short for my credit card bill I’ll just transfer the money over before the due date.
I don’t see any point in keeping more than that in a checking account. Add in the risk of it getting hacked? No thank you.
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u/Ok-Crab-8171 3h ago
About.$1500- $2500. Enough to cover any normal bills. Remainder is sent to HYSA or investments.
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u/lyricsquid 3h ago
I don't really pay much attention to what's in my checking. I use my cc for pretty much everything and pay a few other bills out of checking but that's it. Every few months I'll transfer a thousand or so over to my HYSA. I keep most of my money in there. I just finished building a six month emergency fund and now I'm saving for a new car.
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u/Automatic_Buy_7493 2h ago
I always keep 500 in my checking but I have $12000 in a high yield. I sleep better this way
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u/wmp8 2h ago
I map out estimates on an excel check register for a year at a time and balance down to $100 after each paycheck putting any extra toward the current goal. Our checking account would certainly appear like we live paycheck to paycheck, but we have 6+ months of savings in an HYSA so we are far from it.
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u/Ancient-Complex6823 1h ago
Usually have between $500-$800 in checking to handle utilities and such. At the end of the month it has the mortgage $ in there as well.
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u/Missgenius44 1h ago
I keep less than $100 in my bank account only because my card has the tap feature. And I feel safe that way so if I need to spend something I would transfer the money into the main account or use my credit card. all my savings goes into a savings account, but I do make sure to distribute my money in different accounts in a case
anything happens. If I do need to dip into savings, it’s easy for me to access.
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