How much money in savings/money market accounts

[Anonymous]

How much money do you have that is not invested but is instead in HYSA or money market accounts? We make 425k and have a little over 300k in those accounts. This is more than a year of living expenses for us (but is less than 2 years). We have a bunch of money in ETFs and retirement accounts but wondering if we have two much that isn’t invested or if, given life’s uncertainties, this is a decent amount.

[Anonymous]

You have too much just like we do. We have over 500k (yeah seriously). I don’t want to buy more stocks.

[Anonymous]

This is usually called “emergency fund”. Many threads on this.

We used to have 12 months worth but upped it to 18 recently.

[Anonymous]

Anonymous wrote:How much money do you have that is not invested but is instead in HYSA or money market accounts? We make 425k and have a little over 300k in those accounts. This is more than a year of living expenses for us (but is less than 2 years). We have a bunch of money in ETFs and retirement accounts but wondering if we have two much that isn’t invested or if, given life’s uncertainties, this is a decent amount.

Wow, you spend a lot annually.

[Anonymous]

We only have about $30-$40k in a money market account. We have $100K in bond funds and $1.25 million in stock funds outside of our retirement though.

[Anonymous]

$0. Everything is invested. I find savings accounts useless.
I don't pay taxes (I get more back than I pay) and I can lower my living expenses at the drop of a hat.
Definitely not letting my money sit in savings and have someone else get higher interest off of my money if I can help it.

[Anonymous]

Anonymous wrote:$0. Everything is invested. I find savings accounts useless.
I don't pay taxes (I get more back than I pay) and I can lower my living expenses at the drop of a hat.
Definitely not letting my money sit in savings and have someone else get higher interest off of my money if I can help it.

I don't think you know what a money market account is

[Anonymous]

Anonymous wrote:$0. Everything is invested. I find savings accounts useless.
I don't pay taxes (I get more back than I pay) and I can lower my living expenses at the drop of a hat.
Definitely not letting my money sit in savings and have someone else get higher interest off of my money if I can help it.

That’s easy to do….

….when you’re living in a van down by the river!

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much money do you have that is not invested but is instead in HYSA or money market accounts? We make 425k and have a little over 300k in those accounts. This is more than a year of living expenses for us (but is less than 2 years). We have a bunch of money in ETFs and retirement accounts but wondering if we have two much that isn’t invested or if, given life’s uncertainties, this is a decent amount.

Wow, you spend a lot annually.

We spend about 200k/year. Doesn’t seem like a lot for this area.

[Anonymous]

Agreed- it’s not too much for living expenses, and we make much less. Sigh.

[Anonymous]

There’s something about the current administration that makes me want to keep ~$300k in available cash.

And, I also have a fantasy of buying a house near one of my kids and I like having the down payment funds available.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you have that is not invested but is instead in HYSA or money market accounts? We make 425k and have a little over 300k in those accounts. This is more than a year of living expenses for us (but is less than 2 years). We have a bunch of money in ETFs and retirement accounts but wondering if we have two much that isn’t invested or if, given life’s uncertainties, this is a decent amount.

Wow, you spend a lot annually.

We spend about 200k/year. Doesn’t seem like a lot for this area.

You are very out of touch. How do you think the vast majority of people live?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much money do you have that is not invested but is instead in HYSA or money market accounts? We make 425k and have a little over 300k in those accounts. This is more than a year of living expenses for us (but is less than 2 years). We have a bunch of money in ETFs and retirement accounts but wondering if we have two much that isn’t invested or if, given life’s uncertainties, this is a decent amount.

Wow, you spend a lot annually.

We spend about 200k/year. Doesn’t seem like a lot for this area.

You are very out of touch. How do you think the vast majority of people live?

Different poster.

You are out of touch.

The vast majority of Americans live off less than $100,000 per year. The actual number is probably closer to $70,000 or below.

If you are spending around $200,000 per year, then you have a very large annual expense amount. Emergency funds are not supposed to cover extravagance. Emergency funds are supposed to keep a roof over your table, gas in the car, basic food on the table, the lights on, and shoes on your kid's feet, not an extravagant lifestyle. That way, you can stretch it beyond 1 year if you get stuck, or can still have wighle room if a big emergency, such as a big car repair, lands on top of your joblessness.

[Anonymous]

To clarify, I am not asking how to spend less. We could spend less in an emergency, and we realize that we make more than most people.

We have more than a year’s worth of expenses in mm accounts. Is this too much?

I provided the spending number for context but you can ignore.

[Anonymous]

We have a lot, like over $500k. We are theoretically buying a house in the next year with it. Maybe. We will see.