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How much $$$ should you keep in your checking/savings account before putting the rest in investments, stocks?

Do you know what is approximately a normal amount of money to have in your savings/checking account? I think lots of people don't like to keep much cash available in a savings/checking account -- instead they prefer to put it in investments like stocks, bonds, mutual funds, retirement plans, etc. But you still have to have some spending money available, of course, so I was wondering what's an average amount to have? Do you have any idea?

Public Comments

1. At least a month's budget, including cash expenditures and misc. If you invest in vehicles that you cannot access for emergencies, then consider the term of those and reserve enough over that amount of time. A savings account should be used.
2. I'd say six months worth of expenses is the minimum.
3. A professional financial planner would likely tell you to have 3-6 months worth of normal expenses in reserve. (I keep at least six months worth.) You never know if something unforeseen may happen such as an accident or layoff. A cash reserve will help you get through those tough times. (I've been laid off three times in six years, so I can tell you from experience how invaluable this can be!) If you don't have cash reserves, an emergency could force you to sell stocks at a loss if you need the money during a downturn in the market.