How much to keep in checking?

[wikiwiki]

Just curious---what do others keep in your checking accounts on a monthly basis? Obvioulsy the amount changes as bills are due, etc. But how much of a buffer do you keep in there? (ie what's left in there just before you get paid?)

We are a family of 5, 3 kids age 7 and under, 1 FT and 1 PT job. We like to use debit for most transactions, credit for others, pay off each month. At the end of a pay cycle before the next check goes in, we have about $200 left in checking, sometimes less. Should I try to keep a higher "buffer" in there? I'm afraid I'd just spend it more easily which defeats the purpose. But with 3 kids, the need for cash comes up often - ie school, donations, allowance, etc.

Any advice?

[Emerald]

Because I get paid bi-weekly and the pay days vary each month, I keep roughly 1 extra pay check in checking. That way I don't have to worry about overages in my account, and I don't have to closely track pay checks and due dates. I just write checks when the bills comes.

I also have my pay check directly deposited into savings, and I only move the minimum into checking. It helps a lot that my extra money is already in savings.

[MonkeyMama]

Personally I keep $0 in my checking account.

Of course, you have to be disciplined not to bounce checks and the like. Caveat - I do keep an electronic check register (Quicken) which is basically error proof. With pen and paper I would not run a checking account to $0. One transposed number or math error can really mess you up.

Personally, I just like to be efficient with my money (have it all go to where it needs to go), and a balance I do find tempting to spend. Easier just to leave $0. You can always leave $100 or $1000 and pretend it isn't there. Don't even put it in your check register, if you are worried about small errors.

[Emerald]

Apparently MonkeyMama and I are on opposing teams.

[wikiwiki]

I could put the $500 "buffer" into the savings account at the same back, which is the overdraft account. Then at least it's there if I need it right away instead of waiting for the ING account to transfer over.

Other question -- we use Money 2003 now, it's worked fine and I've always had no problems using it. I am considering changing to Quicken 2011 Deluxe. Anyone use it? Good program? I don't want to automatically update my bank accounts in it, I can do that manually. But I would like to use a newer program for budgeting, and one that is supported still.

[bjl584]

I keep around $500 to $1000.

[kv968]

Let's see...

All the bills are paid for the month and my pay will post tonight so...$20.74. Just about right

Although I do have about $600 in a linked savings account that I can transfer over immediately if needed.

[sblatner]

I also keep zero extra but also use Quicken and am a bookkeeper so our finances are always at the forefront of my mind. No chance we will ever bounce anything. If your finances are not always at the top of your list, it might be good to keep a buffer so that you don't bounce anything. That could get expensive.

We use Quicken 2011 and find it works great. Each time they upgrade, there are always changes that we have to get used to and figure out. Once we get through the growing pains, we like the program.

[phantom]

I generally keep the buffer in my checking account between $300 and $800. When my low point looks like it's going to be above $800 two months straight, I move an extra $500 to an online savings account. I also have a savings account at the same bank as my checking account with $500 in it that I can transfer to my checking account practically instantly. So, I guess you could say my total buffer is always at least $800.

I'm glad to see so many other people here keep it as low as I do. When I was younger and my mom kept an eye on my balance, she always told me I was going to bounce checks by letting it get so low.

[greenskeeper]

$1000

thats with expenses each month being around $4k

so 25% "buffer"?

[disneysteve]

I'll be the outlier here. I keep a buffer of $3,000-4,000 in the checking account. When some big expense comes along like vacations, car repairs, etc, I want to be able to pay it without shuffling money around. Considering that even "high-yield" accounts are paying less than 1%, the amount of interest lost on that money isn't worth the hassle to me.

[ShawnaC123]

I have $100 that isn't incorporated into my ledger so I just pretend it isn't there. That way if there is a mistake or something I will have a little to cover it.

[newlywed2012]

We keep around $1200.

[cypher1]

500-800 but I may bump up to one paycheck's amount to be safe.

[YLTL_Dan]

We usually don't get below $500.. and we have a savings account with the same bank so we can instantly transfer money if needed (keep at least $1k in the savings account).