How much money does it cost to keep cash

Miscellaneous / by admin / April 03, 2023

Let's figure it out with the experts.

Why keep cash

A basic truth: you should not keep all your savings in cash in rubles, because they depreciate over time due to inflation. For the same amount in a year it will be possible to buy less than now.

However, this does not mean that all the money should be immediately invested somewhere. A certain amount must be kept at hand in the currency that is paid in the country. This is especially useful in case force majeure. Then you can take the money and solve urgent issues.

This makes sense, even if inflation is high. If all the savings are invested somewhere, they will have to be quickly withdrawn from there, possibly with losses. For example, selling dollars on a depreciation or urgently deciding what to do with stocks or other purchases. The airbag should be at hand and in rubles (in the currency of your state, if you are abroad).

Anastasia Zaitseva

Chief Specialist of the Trading Organization Department of PJSC SPb Exchange, a qualified investor.

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Part of the financial cushion must be in cash. They have absolute liquidity: you can always pay with them in your country and find an exchanger in another. Plus, there are no technical difficulties with cash. For example, a card may not be accepted somewhere, a phone with a payment function may run out of power.

How much cash to keep

There is no universal amount. Experts advise to determine it based on expenses person or family.

Sergei Solovykh

Head of the department for work with wealthy clients of the investment company Fontvielle.

On a rainy day in strategic reserves, you should keep an amount no less than what is required for a comfortable three-month stay of the family. As for the maximum value, it is limited to six months of average family spending. These terms are optimal, since with a high degree of probability temporary financial difficulties are on the horizon three to six months with the help of such an airbag can be solved by finding new sources of income funds.

Igor Fainman, investment adviser at the European Legal Service, suggests keeping an amount that will cover mandatory expenses for six months.

Igor Faynman

The ruble reserve should be calculated for at least six months. Finding out the amount is very simple: you need to determine your mandatory current expenses and multiply this number by six. Mandatory expenses are, for example, utility bills, loan servicing, food, transportation costs, and child education. Restaurant visits, emotional shopping, and similar spending can be left out of the airbag.

At the same time, it is worth remembering that money for easy access can be stored not only in cash, but also in a savings account. Usually bank it charges a small percentage on them, that is, savings increase without your participation. However, it is better to keep some banknotes at hand.

Anastasia Zaitseva

In my opinion, it is optimal to have half of your monthly expenses in cash. Still, do not forget that cash is more prone to inflation and it is less safe to store it (bills can fly out of your pocket, they can be stolen, they can break). Also, having half the amount of monthly expenses, you will find the opportunity to withdraw money from the card during this time.

That is, be guided not only by the size of the airbag, but also by the potential technical difficultiesthat you may encounter. This will allow you to choose the optimal amount of cash just for you.