21–30 of 49 posts
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Everyone should work towards being able to keep minimum 6 mos of burn in their checking account. Ideally more.
Checking account earns no interest. That's a foolish waste of money
Went to their website. Their demo video starts by saying > Ramp is the only spend management platform that helps you spend less. Am I the only one extremely put off by this? You can have your puffery about how you're the best, but don't insult my intelligence. I'm also instinctively cautious about "AI" powered accounting. The way the AI powered receipt recognition is presented makes the AI seem much more powerful tha…
Would be nice if that calculus changed, though
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Keep as much as you need to give you time to liquidate other things (like stocks or mutual funds). Especially with inflation as high as it is, keeping that much money in a checking account is just boneheaded.
>Keep as much as you need to give you time to liquidate other things And what if there's a crash and your savings takes a 40% haircut?
Also, it's worth noting that there is likely a strong correlation between a financial market crash and sudden unemployment or other issues.
Really big fan of this company. Saved our team a huge amount of accounting time in the first week alone, and on-boarding was super easy (less than 48 hours and we were running).
I'll bite - how did they save you a bunch of time in the first week? And how much time are we talking?
With Ramp, we can instantly create multiple cards per staff member, so they have one card per project we're working on. Our accounting group then immediately knows how to categorize that expense (because that card is ONLY used for that project), and Ramp reminds our staff to forward along the receipt (which it automatically links to the transaction). Our accounting group doesn't have to lift a finger.
It makes the whole process completely mindless, whereas before it was filled with lots of busy work to keep our accounting clean and organized.
The fact that it's free is icing on the cake. Big fan.
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Everyone should work towards being able to keep minimum 6 mos of burn in their checking account. Ideally more.
Why would you want that in a checking account rather than an instant access cash saving account though? Savings interest rates suck atm, but might as well get whatever you can on it.
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Checking account earns no interest. That's a foolish waste of money
Until it's right there when you need it. It's not called an emergency fund for nothing
It’s reasonable to keep 6 weeks of living expenses on hand, but the rest doesn’t need to be in cash as long as you can quickly liquidate it.
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Why would you want that in a checking account rather than an instant access cash saving account though? Savings interest rates suck atm, but might as well get whatever you can on it.
Not sure how they are in the US, but I've gotten 0.01% last year on my cash savings account. It's not worth keeping money there. The time you spend moving it from there to your primary account eats the interest.
But .5% is still 50x higher than .01 (and many multiple times higher after a few years of compounding interest).
If you have a 15k rainy day fund, you're easily throwing out 1k a decade by keeping it in checkings.
I use marcus, not affiliated but here: https://www.marcus.com/us/en/savings/high-yield-savings
Edit: missed the part about you not being in the US. Not sure what options you have, but to any americans reading this, use high yield savings!
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Everyone should work towards being able to keep minimum 6 mos of burn in their checking account. Ideally more.
Checking account earns no interest. That's a foolish waste of money
So that 250K would earn you a cool $25 in a year.
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That is a crazy high requirement. I am planning on moving to Miami and they need evidence that I've had >3 months rent in the account for 3 months. Who keeps that much money in a checking account?
Everyone should work towards being able to keep minimum 6 mos of burn in their checking account. Ideally more.
people shouldnt do things they dont have to