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  • Writer's pictureDiana Miret

Question # 1 - How much cash should I keep in the business's operating account?

I recommend keeping 1.5 times your monthly expenses in the operating account and 3 times the monthly operating expenses in a separate account labeled RESERVE.




This keeps you from accidentally overdrawing the operating account and removes your reserve cash from being spent.


How do you calculate the right amount? I go to my last 3 bank statements and look at what was spent over the past 3 months and average the total. Quick and easy.


Keeping money in a separate account for Reserve is essential in the event of a "bad month".

Many businesses were able to navigate during COVID-19 shut-downs because they had reserve cash.


What if you don't have money right now to put in a Reserve account? Open one TODAY and put what you can into it every week. It will build.


This is one way to pay yourself first.



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