Financial Expert Advice: Don't Hoard Money in Your Account

Jakarta, CNBC Indonesia - The global economy is currently gripped by uncertainty stemming from the repercussions of international geopolitics. Amid this economic instability, the phrase “cash is king” is frequently echoed. This term describes the market participants’ tendency to hold cash, either in savings or liquid instruments like the US dollar, during uncertain economic conditions. However, financial planners warn that hoarding too much money in an account can be detrimental in the long term. This is because the value of cash can be eroded by inflation or transaction errors. “Savings accounts often lack the protections that credit cards have,” said Jessica Goedtel, a certified financial planner in Pennsylvania, as quoted by CNBC Make It, cited on Wednesday (25/3/2026). This means funds are harder to recover if the account is hacked. Therefore, it is advisable not to hoard cash in your account. Meanwhile, according to Gregory Guenther, a licensed retirement planning counsellor in New Jersey, you should keep enough money in your account to cover one or two weeks’ worth of bills. “If it’s too little, you’ll feel anxious about every swipe; but if it’s too much, you’ll miss out on growth in accounts with higher returns. The right point is personal, but it will allow you to live without having to double-check your balance before buying groceries,” Gregory emphasised. Although maintaining a healthy cash balance can help you avoid bank admin fees that are usually quite frustrating, that money is not a substitute for an emergency fund. An emergency fund is intended for unexpected large expenses, such as medical bills or job loss. Financial planners typically advise setting aside an emergency fund worth three to six months’ expenses in a separate, easily accessible place, such as a high-interest savings account. This way, the money is available whenever you need it and without risk.