How much cash on hand?

How much cash should I have in my bank accounts before investing the rest? For context, I am a second-year analyst and I'm having trouble deciding how much of my savings should be liquid vs. investing. I have no student loans or credit card debt as well as no help from my parents. What would you say is a good #? Appreciate any insights!

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (11)

  • Analyst 1 in IB - Gen
Sep 14, 2021 - 8:08pm

Always be invested. I buy VTI QQQ every week. No more than $10k for me. If a serious emergency ever happens these are extremely liquid indexes for a reason. 

Most Helpful
Sep 19, 2021 - 9:33pm

This is what I do. I keep 5-15k in my account and honestly it really only ever gets over 10k if I forget a pay cycle or something. I put it all into a brokerage. About 25% single name stocks, 60% broad ETFs (some levered) and the rest into speculative shit.

The caveat here is that I'm in a fortunate situation where I know if I had some type of life altering / shattering situations come up I'd always be supported by my parents.

Anything short of that (laid off, in between jobs, had a big expense come up, etc.) would be well supported by the ~10k cash I have. If I needed to, I'd consider almost all of my brokerage "almost liquid"

  • Analyst 1 in IB - Gen
Sep 19, 2021 - 7:59pm

Wtf 9 months base? Way too high invest some more 

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Sep 19, 2021 - 8:23pm

I've got 25k in checking and 10k in savings. Everything else in Roth IRA, 401k, and equities. Lost 3k on a trade yolo'ing my 2nd Roth contribution on GME and another 101k on another GME trade in my brokerage account so keep in mind I'm retarded.

I have never touched that 10k. It's my emergency fund for actual emergencies. I usually keep around 5k minimum in checking so I can access it whenever. $300 or so in cash usually in my wallet and house. I also have around $15k in credit each month just in case I somehow need access to that much pronto, but the key with this is I can pay it off in full if I ever have to spend that much. This thread made me make a reminder to move some checking into my brokerage tomorrow.

Sep 19, 2021 - 9:43pm

I would think however much you feel you need in your savings account to feel comfortable investing/spending the rest. Everyone is different and has different situations/needs/preferences. Investing is good but think it's important to note that money invested in the market does have at least a non-zero risk of going to zero or being meaningfully impaired at least temporarily / for a while. Either way, best wishes and good luck :)

  • Analyst 1 in IB - Gen
Sep 19, 2021 - 9:50pm

If the market went to "zero" you'd have to worry about guns and ammo not fiat currency.

Sep 19, 2021 - 9:53pm

Iure ipsa et omnis et aut fuga est. Dolorem fugiat praesentium ea tenetur.

Dicta voluptatibus quam et laudantium veniam eius. Quae est voluptate debitis commodi. Minus quibusdam nisi placeat porro illo.

Debitis autem et reiciendis inventore et. Asperiores repudiandae perferendis occaecati ipsum ipsa corrupti perspiciatis reprehenderit. Corporis vel dicta minus illum officia eum. Sed minima quam qui vero. Reiciendis sint libero qui in facilis eum quas.

Officiis non nesciunt laboriosam dolorem in eos aut. Corporis et quidem amet optio. Natus non aperiam aut. Facilis quia quibusdam officiis adipisci quo. Adipisci distinctio magnam deleniti et.

Start Discussion

Popular Content See all

Oncycle is a fucking joke
+193PEby Analyst 2 in IB - Cov
Dating smart girls
+143OFFby Analyst 2 in Consulting
How often do you get "matches" on apps?
+135OFFby Associate 1 in AM - Other
I am done with life
+102OFFby Prospect in IB-M&A
Have you ever sued your employer?
+95PEby Principal in PE - Other
Am I Crazy To Leave a 500K Job for Consulting?
+93COby Associate 3 in S&T - Other
The Qualifications of an EB
+85IBby Summer Associate in IB-M&A

Total Avg Compensation

September 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (38) $367
  • Associates (219) $232
  • 2nd Year Analyst (133) $153
  • 3rd+ Year Analyst (30) $147
  • Intern/Summer Associate (103) $143
  • 1st Year Analyst (484) $135
  • Intern/Summer Analyst (376) $82