If your company spends $10,000 a month on average, then your business should keep $30,000 cash in the bank at all times.
If you personally spend $5,000 a month, you should have a savings account with $15,000 in it.
These cash reserves should NEVER be touched.
How much money should you keep in your business account?
The short answer is that your cash reserve should be sufficient for you to feel comfortable running your business. Some experts recommend having three months of expenses. Others recommend six months.
How can a small business save money?
27 Money-Saving Tips From Successful Small Businesses
- Cut traditional advertising in favor of low-cost alternatives.
- Get sponsors for events.
- Outsource, outsource, outsource.
- Negotiate with vendors.
- Think beyond the cash box.
- Live in the cloud.
- Cut extraneous employee expenses, not employees.
- Embrace telecommuting.
How much money should I keep in savings and checking?
The right amount of money to keep in a checking account. One helpful rule of thumb is to keep one to two months’ worth of spending in your checking account and send the rest to savings accounts or retirement accounts.