Your personal finance goals will dictate how much money you should have in your checking account. For example, if you are working towards building an emergency fund, you will want to keep more money in your checking account than someone who isn’t as focused on that goal.

Generally speaking, experts recommend keeping enough money in your checking account to cover three to six months’ worth of living expenses. This will ensure that you have enough money to cover unexpected costs, like a car repair or medical bill, without having to dip into your savings.

How to calculate how much money you need in your checking account

To calculate how much money you should have in your checking account, start by adding up your monthly living expenses. This includes things like rent or mortgage payments, utility bills, groceries, and transportation costs. Once you have your total monthly expenses, multiply that number by three to six. This will give you a good range of how much money you should keep in your checking account to cover unexpected costs.

For example, let’s say your monthly living expenses are $2,000. Multiplying that by three would give you a checking account balance of $6,000. Multiplying it by six would give you a balance of $12,000. So, in this case, anywhere from $6,000 to $12,000 would be a good range to aim for.

Of course, your personal circumstances will dictate how much money you need in your checking account. If you have a lot of debt or are working towards other financial goals, you may want to keep more money in your checking account. On the other hand, if you have a good handle on your finances and don’t have any major debts, you may be able to get away with keeping less money in your checking account.

Bottom line: there is no set amount of money that you must keep in your checking account. The right number for you will depend on your personal circumstances and financial goals. Use the tips above to help you calculate how much money you should keep in your checking account.

How to make sure you always have enough money in your checking account

Once you know how much money you should keep in your checking account, it’s important to make sure that you always have at least that much money available. One way to do this is to set up a direct deposit from your paycheck into your checking account. This will help ensure that you always have enough money to cover your expenses.

You can also use automated transfers to move money from your savings account into your checking account as needed. This can be a good way to avoid overdraft fees if you tend to keep a low balance in your checking account. Just be sure to schedule the transfers for a time when you know you’ll have enough money in your savings account to cover them.

Finally, make sure to monitor your account balance on a regular basis. This will help you avoid surprises and ensure that you always have enough money in your account to cover your expenses.

By following these tips, you can make sure that you always have enough money in your checking account to cover your costs.