How much of a cushion do you keep in your checking account? This is something I struggle with, as my conservative side definitely acknowledges the safety and security that comes from having money instantly available. (And a checking account is instant enough for me; I don't really buy into the idea that I should have a couple hundred dollar bills stashed in a coffee can.)
However, I also prefer to have my money working for me, in the form of gathering interest in my savings account or reducing interest charges on my credit card. Return for the money is rather important to me, given that I have so little discretionary income with which to bring my net worth out of the red.
To this end, I have only about $150 cushioning my checking account. And honestly, I only keep it this high because my $118 car insurance automatically debits from my checking account on the 16th each month and I don't want to risk my mid-month paycheck not being there to cover it.
So, am I insane, walking a tightrope without a net?
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