How much cash is too much cash on hand?

[bjl584]

I don't think that there is a one size fits all answer to that question.
It really depends on personal situation.
Cash can give you a lot of leverage and opportunity.
For instance, if you are into real estate investing, then having a large amount of cash could be advantageous.
If you can pay cash for a piece of real estate and close in a couple days, then you have a huge advantage over other potential buyers who have to use a bank for a loan.

The average person not doing those sorts of investments, 3 to 6 months worth of expenses is probably more than enough

[LivingAlmostLarge]

You may also want to just gift cash annually a lot say $30k a year to your child and spouse then get more by the end of the year.