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There have been much discussion about emergency funds but beyond that, how much cash do you hold?
In my personal groups, we have recently talked about holding cash. We each have upwards of 3 years worth of cash in liquid accounts.
Warren Buffett has also been hold large amount of cash in the last few years.
Do you hold cash beyond the your 6months emergency fund? And how many months that would equate to? My emergency fund is equated to annual income.
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I think it's a great question. I do hold more than just my emergency fund, but it’s not a huge amount. Personally, I prefer having enough cash to cover around 6 months of living expenses, on top of my emergency fund. I think of it as a buffer for unexpected opportunities or market downturns, kind of like what Buffett does. I know some people keep a lot more for peace of mind, though, especially in uncertain times. Everyone’s approach is different! This article has some solid insights on how to balance cash with other investments, too.