Having $100,000 in cash can make a bank balance look wonderfully reassuring. It can also leave a saver facing an awkward question: How much of that money actually needs to sit there? The answer depends on upcoming expenses, job security, debt, investment goals, and how quickly the money might need to move.
Someone preparing to buy a house has different needs from someone who already owns one and plans to retire soon. Cash provides flexibility, but holding more than necessary can create an opportunity cost that grows over time. The goal isn’t to drain a healthy savings account. It’s to give every dollar a job.
