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> I really don't know why they do this though. Because you're looking at absolute numbers and not percentages/relative values. That much cash on hand sounds ab
by kllrnohj 3y ago
> I really don't know why they do this though.
Because you're looking at absolute numbers and not percentages/relative values. That much cash on hand sounds absurd when you're only looking at the absolute number of it, but the amount it represents is "just" 6 months of revenue. And any good financial advisor will tell you it's a good idea to keep 6 months of earnings as savings.
- nerdkid93 3y agoA good financial advisor will recommend keeping 3-6 months of non-negotiable expenses saved, not revenue. 6 months of revenue would be a quite significant amount of savings for most people.