Expert Guide: How Much Cash to Keep in Hand?


Saving money for the future is good as it aids in emergencies. No matter what strategy you use for it, having money in hand is good. But how much cash should I have in hand? This query may confuse you. Usually saving money depends on the user. If a user has extensive expenses daily, he should save more money than one whose expenses are low. Moreover, the frequency of emergencies is another factor that decides how much cash you should save for the future. 

We’ll break down some facts about how much cash a person should save for his future needs. So, keep on reading to learn about this query. 

How Much Cash is Enough For an Emergency? 

Regular expenses are known to every person, it’s an emergency that is unexpected. On happy days, it’s good to keep the rainy days in mind too. You should have enough cash in hand that may compensate for your needs in the hours of the emergency. Most people have their savings accounts and a handsome amount goes to that particular account for the coming days. This is a good strategy to follow as it prevents any tension in emergencies. 

The two most liked methods to save money for emergencies are Ramsay’s 10% rule and the 20/30/50 method. Both these methods are valid as this helps save money for rainy days. Financial experts recommend having enough money in hand that is equal to your 6 months expenses. It means if $3,000 is enough to meet your monthly expenses, you should have $18,000 in your savings account. 

According to a financial survey, it takes about 8 months on average for a person to find a new job. According to this survey, 8 months may be hard if one doesn’t have enough money in his emergency account. That’s why the experts of this survey, like Suzu Orman, suggest saving enough money that can run your home expenses for 8 months. 

How Much Money Should I Have at Home? 

If you have someone loyal enough to you to lend you money instantly in the hours of you, you can go without saving money. However, it’s good to have enough money that can run your home expenses for six to eight months. If you lost your job, you can find a new one at this time. 

Is It Good to Have Money in Saving Account? 

You know, the pandemic situation of covid-19 has left many people jobless. Different people are in search of new jobs after losing the first one. This may also happen with you as you’re not an exception from those being affected by these situations. So, it’s a good idea to have enough money in your savings account that can help you meet your daily routine expenses. 

If your emergency or saving account has enough money that can support you throughout the rainy days, it will prevent your stress and tension. So, try to save at least 10% of your monthly income so that you may face the emergency without any tension. 

Different financial advisors keep on advising you to have enough money in your savings account that can support you when you lose your job or meet any emergency. Moreover,  the current pandemic situation of covid-19 has also hos the world’s economy badly. 

It was the time when people realized that they need cash in hand. So, make sure to do take smart decisions and ensure proper financial planning for a good life. 

Hence, it’s good to follow any strategy to save money for your rainy days. According to most financial experts, having enough money in your saving account is good which is 6 to 8 times your monthly expenses. This will prevent any suffering in hours of need.


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I’m a Blogger, SEO expert and also Blockchain analyst and also an avid learner of the technology and its advancements. I assist budding digital marketing entrepreneurs with solutions that fit their business models and provide them with strategies to enhance their digital business more!


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