How Much Cash Should You Have in Order to Invest

Is there a certain percent number that you’d like to keep as cash. It’s a couple hundred dollars, $200,000. I think people will get nervous if they say, oh, where do we only have a hundred thousand dollars in the bank? Just because there’s always paid just as money comes in every day. There’s bills that come in.

And once in while almost like an emergent, Hey, we got to cover this taxes today or something like that. So there’s always typically a hundred or 200, lots of times more. And we try to manage that sometimes we’ll get significant payoffs or Oreos or significant money comes in or investments come in and it’s not readily deployed.

We sweep that money to a money market account. So we’re earning some anemic rate of interest, but at least there’s a little bit of money versus sitting in the kind of operating account where they’re earned zero. So that’s done regularly. It doesn’t add up to much, but it’s fine.

Leave a Reply

Your email address will not be published. Required fields are marked *