Question

What’s your ideal “cushion” amount in your checking account? We’ve been living paycheck to paycheck for so long and now thanks to some budget ideas from this group we are finally getting to a place of more financial security. We’ve paid off 4 major debts in the last month. We’ve curbed our spending in a big way. And we have used tax return money to bolster our savings again. But I’d like to eventually live in such a way that I could treat my family to something big without worrying about the hit to our account. So what’s your cushion? We are aiming for $1k in our checking account at all times after bills are paid. We aren’t there yet but hopefully soon.  

Answer 1

I keep a $1000 cushion. Sometimes it builds a little more than that depending and I will take the extra and make an extra payment towards my debts, or throw it towards savings. But the only reason I usually have extra is for child support- but it’s so unpredictable so I don’t factor it into my budget as that has definitely hurt me in the past.  

Comments

@lilililia I have one of these too  

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@byng9 it’s the most frustrating thing sometimes!  

Answer 2

Our credit union requires an average minimum balance of $250 so I use that as our cushion. If the average is below that we get charged a small fee.  

Answer 3

I am comfortable with a minimum of $300-$500 as a cushion. Budgeting by paycheck to paycheck this amount always changes (which is really the whole point)- not to be confused with having a “savings account”. For us, if there’s anymore than that, it could be used better toward emergency fund, etc.  

Answer 4

We're a family of 4 and our cushion in our bank is $500

Answer 5

$1, 000 is what it use to be my cushion. These days $500.  

Answer 6

$0 cushion here. I don't like having money sitting around without a purpose

Answer 7

$100. 00, family of 3

Answer 8

We keep a $3, 000 cushion. I would prefer it be much lower than that but my husband really prefers this amount.  

Answer 9

To be honest I leave what ever is left over after the bills are paid cause I will need it for the following week

Answer 10

Our goal is $1000 for cushion. But currently it has been sitting at $450-600.  

Answer 11

$6000 is the least I’m comfortable with. I’m a single mom, homeowner, and no one to rely on in an emergency but myself. I’d like to build it up to $12, 000, that way I could weather unemployment and an expensive home emergency.  

Answer 12

A cushion for me is anything more than 0  but my goal is to build it monthly by 100 until I hit 500.  

Answer 13

Are we talking a cushion or savings? I keep 200-300 as cushion for any bills or expenses I may forget or to buy something online and then deposit cash for. But everything else goes to savings or debt.  

Comments

@cruise8 that’s what I thought you meant! I saw a few comments that made me think that I had a different understanding

Answer 14

Our cushion goal is to have a month worth of all our total bills in that account.  

Answer 15

Our cushion is 4x our monthly bill's. In the event that something happens we have money to fall back on.  

Answer 16

My goal is enough to pay one or two major bills. so around $400-$500

Answer 17

300. 00 cushion, 1000. 00 emergency savings

Answer 18

Right now it’s whatever we don’t spend before next paycheck  but since we have some extra money right now I’m determined not to go below $500.  

Answer 19

I don’t leave money in my checking, except for $40 to cover my sporadic use of tolls, I know where every penny goes. Emergency Fund (savings) $1000 6 months of necessary expenses in a high yield savings account to cover extreme emergency or lay-off