What's a normal amount to have in the bank?

amother

Wed, Jan 18 2023, 8:02 pm

My husband has been working since my daughter is 6 weeks old so 11.5 years now. He started off in low paying jobs and then got a good one 7 years ago. It's a full time job that pays the bills with health insurance. I just started working this year, I was a stay at home mom until now. I have 2 kids with adhd who need a lot of help but are starting to get more independent, thus I just started working. We have at least 50k in the bank. My husband acts like we have maybe 5. He gets upset whenever I spend on what he considers extra. I do most of the shopping and I try to be careful. I am just curious if 50k is worth less than I thought and he has a reason to worry. No major health issues. We plan to do everything simply in terms of simchas. We don't eat out more than 3× a year and don't go on vacations. No extra curricular activities. Is he being ridiculous or not? I grew up with parents in debt because my father was a rebbe so I don't know the norm.

amother

PlumPink

Wed, Jan 18 2023, 8:07 pm

The number doesn't matter. What matters is whether you have enough for your needs. Finance experts will tell you that you should ideally have 6 months of living expenses in addition to saving for retirement. How close are you to that?

amother

Snapdragon

Wed, Jan 18 2023, 8:07 pm

Do you own a house or are you trying to save up for a down payment? I think in general, it is prudent to have cash in bank (or readily available) to cover6 months of for all living expenses.

amother

Seablue

Wed, Jan 18 2023, 8:23 pm

It depends. The 50k should be for emergencies. You shouldn’t be dipping into it, and ideally you should try to be increasing that amount (and investing some of those savings).
So it’s not exactly 5k but if you think of it as “a lot” then surely it will dwindle because you’ll use it/spend with less caution.

amother

Electricblue

Wed, Jan 18 2023, 8:25 pm

In these hard times 50k is not that much. Expenses keep going up and things can change on a dime.
We bh have over a million in the bank and while we live comfortably by no means do I spend without a cheshbon. If I had 50k I’d be a lot more careful.

amother

Rainbow

Wed, Jan 18 2023, 8:31 pm

if it makes you feel better, we're in our late 40's with older teens and young adults. We have NOTHING--- no retirement savings, no emergency fund, NO savings. $20,000 in credit card debt and over $100,000 in student loan debt. We have reasons for all of this but at this point our expenses outweigh our income. We rent forever as well-- no home ownership for us. So there ARE those of us out there who would go gaga for 50K in the bank.

amother

Wed, Jan 18 2023, 8:31 pm

amother Snapdragon wrote:

Do you own a house or are you trying to save up for a down payment? I think in general, it is prudent to have cash in bank (or readily available) to cover6 months of for all living expenses.

We own a house with a mortgage. If 6 months living expenses is normal for savings then I guess he is right.

amother

Steel

Wed, Jan 18 2023, 8:35 pm

To me it’s a lot but I would be careful about spending it. Do you have a lot of extra money every month after expenses? Is this your only money that you have or do you have any other savings, investments etc?

amother

Cobalt

Wed, Jan 18 2023, 8:36 pm

Your husband is not being ridiculous in terms of wanting to preserve that amount and add to it if possible.

However it is your overall finances you need to think of. What are your expenses for six months. How much are you saving. What are your retirement plans. Do you owne your home.

amother

Lavender

Wed, Jan 18 2023, 8:40 pm

Kol Hakavod to you !!! Married 23 years and we usually have about $100 before our next paycheck rolls in.
I also have $1500 in a savings account and I feel rich! Lol.
We’ve had it alot worse , so I’m not complaining .

It’s nice to see that people really do have money in their bank accounts . It makes me optimistic that one day I’ll be blessed with that too.

amother

Powderblue

Wed, Jan 18 2023, 8:41 pm

amother OP wrote:

We own a house with a mortgage. If 6 months living expenses is normal for savings then I guess he is right.

6 months is the minimum.
And if 6 months expenses is 50k, then you can't count on it for simchas.
Even if you plan to make simple simchas, you should still have fund for that.
Same for retirement.

Trademark

Wed, Jan 18 2023, 8:48 pm

amother Electricblue wrote:

Why would you keep a million in the bank instead of investing it?

By keeping it in the bank the money is only losing value.

amother

Electricblue

Wed, Jan 18 2023, 9:05 pm

Trademark wrote:

Why would you keep a million in the bank instead of investing it?

By keeping it in the bank the money is only losing value.

It’s dhs department but the short answer is we’re in the process of building a house and a nice portion will go towards that. I’m not so knowledgeable, I know dh has some investments here n there. I trust that he knows what he’s doing.
All I’m saying is, we live comfortably but we don’t throw money around. Every move costs so much as it is. I can’t imagine having 50k in the bank and thinking I can now spend without thinking twice.

amother

Hibiscus

Wed, Jan 18 2023, 9:09 pm

50K in checking or savings? We have around 15-20K in checking at any given time and we have savings/investment that we don't touch. It's for retirement and marrying off the kids.
But if your total amount, checking & savings are 50k, then that's very little in the grand scheme of things.

amother

PlumPink

Wed, Jan 18 2023, 9:09 pm

amother Electricblue wrote:

Please learn about your finances. It's never a good idea for only one spouse to know about money matters. Even if it's "his department" you need to know what you have and where.

amother

Hibiscus

Wed, Jan 18 2023, 9:11 pm

amother PlumPink wrote:

Please learn about your finances. It's never a good idea for only one spouse to know about money matters. Even if it's "his department" you need to know what you have and where.

I don't think it's a problem for the husband to deal with finances if the wife agrees to it.

amother

Electricblue

Wed, Jan 18 2023, 9:12 pm

amother PlumPink wrote:

Please learn about your finances. It's never a good idea for only one spouse to know about money matters. Even if it's "his department" you need to know what you have and where.

I know the basics and I know how to access the rest of the info if the need arises. I have access to enough cash in case of an emergency until I get a grip on things.
Dw I’m a worst case scenario kind of person if you haven’t realized. I have it all planned out.