Personal Finance
How much cash should a business keep?
Quick Answer
A healthy small business holds 3-6 months of operating expenses as a cash cushion, plus a separate tax bucket holding 25-30% of net profit, plus dedicated savings for known upcoming expenses (equipment, hiring, lease changes).
Warren Team
Updated April 26, 2026
36
Warren Team
Updated April 26, 2026
36
Important Disclaimer:
The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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