top of page
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.



12 views0 comments

Recent Posts

See All

コメント


bottom of page