The ABC Truth: you should not keep all your savings in cash in rubles, because they depreciate over time due to inflation. For the same amount in a year you will be able to buy less than now.
However, this does not mean that all the money needs to be invested somewhere immediately. A certain amount must be kept at hand in the currency that is paid in the country. This will be useful primarily in the case of force majeure. Then you can take the money and solve urgent issues.
This makes sense, even if inflation is high. If all the savings are invested somewhere, they will have to be quickly extracted from there, possibly with losses. For example, to sell dollars on a declining exchange rate or urgently decide what to do with stocks or other purchases. The airbag should be at hand and in rubles (in the currency of your state, if you are abroad).
Part of the financial cushion should be in cash. They have absolute liquidity: you can always pay with them in your country and find an exchanger in another. Plus, there are no technical difficulties with cash. For example, the card may not be accepted somewhere, the phone with the payment function may be discharged.
There is no universal sum. Experts advise to determine it based on the expenses of a person or family.
For a rainy day, an amount of at least what is required for a comfortable three-month stay of the family should be stored in strategic reserves. As for the maximum value, it is limited to six months of average family spending. These terms are optimal, since with a high probability temporary financial difficulties on the horizon of three to six months with the help of such an airbag will be solved by finding new sources of funds.
Igor Fineman, investment adviser of the European Legal Service, suggests keeping an amount that will cover mandatory expenses for six months.
The ruble reserve should be calculated for at least six months. Finding out the amount is very simple: you need to determine your mandatory current expenses and multiply this number by six. Mandatory expenses are, for example, utility bills, loan servicing, meals, transportation costs, and tuition fees for a child. Visiting restaurants, emotional purchases and similar expenses can not be taken into account when forming an airbag.
At the same time, it is worth remembering that money for easy access can be stored not only in cash, but also in a savings account. Usually the bank charges a small percentage on them, that is, the savings increase without your participation. However, even at the same time, it is better to keep a few banknotes at hand.
In my opinion, it is optimal to have half the amount of your monthly expenses in cash. Still, do not forget that cash is more prone to inflation and it is less safe to store it (bills can fly out of your pocket, they can be stolen, they can break). Also, having half the amount of monthly expenses, you will find an opportunity to withdraw money from the card during this time.
That is, focus not only on the size of the airbag, but also on the potential technical difficulties that you may encounter. This will allow you to choose the optimal amount of cash for you.
