Too Much Cash

It's a good problem to have. A problem a lot of people wish they had. But one that I'm seeing more of.

You built enough cash on hand to qualify as an 'emergency fund.' 3 months, 6 months, whatever that looks like. At some point, you reach a threshold where you determine there's enough cash on hand. This is different for everyone. I personally prefer to keep more than most might. But that's me, and I'm comfortable with the tradeoffs that entails.

But then after 'enough', you are building more cash only because you don't know what else to do with those savings. You've been meaning to 'do something', but it is now three years later. Time flies.  You were going to invest some of it in April after your taxes were finished, but tariffs. Now that the market is 20% higher, you'll wait for another opportunity. CD's sound appealing at 4%, until you realize there is a superior option called T-bills that exclude earned interest from state income tax. But remember, those T-bills fund only your short-term needs. Not intermediate or longer-term ones.

And funding those intermediate to longer-term liabilities sooner may allow for a younger retirement date. Or more resources to pay for college. Or simply providing more optionality and independence, which can be priceless. Don't let an excess of cash because you 'didn't know what else to do with it' hold you back from better utilizing those resources.