How Much Cash Should You Actually Keep?

Somewhere in Britain, someone has £40,000 in a savings account and can't tell you why. It crept up a pound at a time, each one buying a little more peace of mind. And most of it is now going backwards.We're taught that saving is the safe choice. But past a point, cash stops protecting you and starts costing you — and almost nobody can tell you where that point sits.This week, Ed and Chris Tuite work out how much cash you should actually keep. Three things that move your number: how safe your job is, what fallback options you have, and how well you sleep at night. Then the part most people skip — what to do once you hit your number, why you flip your saving ratio, and the £19,000 difference it makes over 20 years.Got a rainy day fund? Tell us your number in the comments.The Mouthy Money podcast — how we actually think about pensions, ISAs, mortgages, tax and the economy. New episodes every week.🔔 Subscribe: https://www.youtube.com/@mouthymoneypodcast📰 Mouthy Money News (short explainers, weekly): https://www.youtube.com/@MouthyMoneyNews📲 TikTok: https://www.tiktok.com/@mouthy.money.news📸 Instagram: https://www.instagram.com/mouthymoney/✍️ Substack: https://mouthymoney.substack.com/📩 Get in touch: [email protected]: This content is for information and discussion only and is not financial advice. Capital is at risk and past performance is not a reliable indicator of future results.Produced for general information only. Not investment, legal, tax, mortgage or other financial advice. If in doubt, consult a regulated professional about your own situation. Past performance is no guarantee of future results. Investments can fall as well as rise and you may get back less than you put in. Never invest more than you can afford to lose. More at https://www.fca.org.uk/investsmart. Captions are auto-generated and may not be fully accurate.