Checking account buffer

[marla]

I just looked at my checking account and there was only $3.75 left in it after a check that I thought had been paid (but apparently hadn't) took out my $100 buffer I usually have. This threw me for a huge panic because I hate when my checking account get under $100.

Do others feel this way? Do you have a set amount that if you see your checking account go below you begin to panic? If so, what is this buffer amount and how did you set it (I have no idea why I set $100 - it's completely arbitrary, but it has always been that).

[readytorock]

I set my buffer to $500, because my EF is in an online savings account and transfer times are 3-5 days if I needed that money to cover an emergency. I'd rather have a couple hundred available to me now, on my debit card (checking account), just in case.

[disneysteve]

We never have less than a couple thousand in the account just in case something has to be paid on short notice without time to transfer funds.

[PrincessPerky]

I have a buffer of more than my mortgage..because there are way to many weeks where my husband doesn't get paid. (he gets it the following week, but it might be to late for the mortgage.)

[feh]

Our buffer is between $500 and $1000. That's the lowest it gets - on average it's higher (ie. after paychecks are deposited).

[Aleta]

We have an interest bearing checking account that has a minimum of $100.I normally will keep an extra 200 there. I also have a money market at the same bank so I can transfer money 3 times a month from that account to the checking account. I've changed my way of banking. I deposit the checks into the money market throughout the month and transfer at the beginning of the month the money needed to pay bills from the checking account. Why deposit money into an account that isn't getting very much interest?

[LivingAlmostLarge]

About $3-5k extra any given time. I work a month ahead. Why? I get paid once a month so all my bills are paid 1st of the month no matter what. CC, utilities, mortgage, HOA, car insurance, etc

This way I just pay everything and then my paychecks cover the next month and it just keeps building and if a paycheck doesn't come through it doesn't matter.

[maat55]

I keep 6000 in my business checking and 1500 in my personal checking. I do this so that I can pay any bill as it comes.

[maat55]

About $3-5k extra any given time. I work a month ahead. Why? I get paid once a month so all my bills are paid 1st of the month no matter what. CC, utilities, mortgage, HOA, car insurance, etc

This way I just pay everything and then my paychecks cover the next month and it just keeps building and if a paycheck doesn't come through it doesn't matter.

Yours is a good simple plan.

[stressedmama]

About a $200 buffer. I also hate to keep to much extra in an account that earns hardly and interest.

[Aleta]

It took me a while to build up one month in advance for bills to be paid, but I do the same Livingalmostlarge. That way you don't have to stress out if the month is short. For instance, I have just transferred the money for the bills in August. It keeps you one month ahead. It was so worth it to me to save for this.

[LivingAlmostLarge]

My mortgage is already paid in August, all CC and utilities are done. I still have $4k in the checking, sure it's crappy but I had to leave it in there because I bought a mattress last month for $750 and DH charged a bunch of work expenses. So next month we're going to have huge CC bills. I am just planning ahead and yes I could transfer it to HSBC our online back but I'm lazy.

Instead I'll make a CC payment midmonth and again on the first. But circumstances are unique in that we usually don't have such large bills just these past 3 months.

Maat, one thing you learn when getting paid once a month, pay all bills first and immediately. I learned that when I got a job paid once a month, it was HARD to go for 4 weeks without a paycheck, and that's when everyone I worked with explained how they all lived a month ahead. It's impossible not to when you only get paid once a month.

[maat55]

My mortgage is already paid in August, all CC and utilities are done. I still have $4k in the checking, sure it's crappy but I had to leave it in there because I bought a mattress last month for $750 and DH charged a bunch of work expenses. So next month we're going to have huge CC bills. I am just planning ahead and yes I could transfer it to HSBC our online back but I'm lazy.

Instead I'll make a CC payment midmonth and again on the first. But circumstances are unique in that we usually don't have such large bills just these past 3 months.

Maat, one thing you learn when getting paid once a month, pay all bills first and immediately. I learned that when I got a job paid once a month, it was HARD to go for 4 weeks without a paycheck, and that's when everyone I worked with explained how they all lived a month ahead. It's impossible not to when you only get paid once a month.

As a self-employed, I make irratic deposits to my personal account. But, 1500 keeps me ahead of the bills. My only fixed bills are my house, cable and paper.

[Joan.of.the.Arch]

Our main checking account is interest bearing, but fees are incurred if the balance drops below $1000 , so we certainly keep it above that. Other checking account is used as savings, so it only goes up, except when we transfer some to another form of saving/investing. With no other checks being written on it, there is no chance that some other check will suddenly be deducted, so there is no need for a buffer.

[simpleyme]

[QUOTE=marla;178840]I just looked at my checking account and there was only $3.75 left in it after a check that I thought had been paid (but apparently hadn't) took out my $100 buffer I usually have. This threw me for a huge panic because I hate when my checking account get under $100.




I always assume all my checks will clear so I deduct them them in my register, any uncashed check money will go to my heirs I guess