Do I have too much cash?
By Adam Kasick | Wealth Advisor | Updated September 2026
You may have too much cash if the amount you hold materially exceeds what you need for near-term spending, emergencies, taxes and known opportunities, and the excess has no clear purpose. But cash isn't lazy just because it's cash.
Here's how I'd think about it.
Before jumping to a product or transaction, I want to understand what changed, what this money needs to do and which decisions actually deserve attention now.
What could change the answer?
- What is the cash protecting you from?
- When could you reasonably need it?
- Are there upcoming taxes, purchases or business opportunities?
- What would the excess money be expected to do instead?
Let's make this real.
Hypothetical example. For illustrative purposes only.
Imagine someone has done a great job building wealth but a major part of the financial picture no longer has a clearly defined job. The answer isn't automatically to invest, sell or move it. The first step is understanding the purpose, timing and tradeoffs. Once those are clear, the available choices become much easier to evaluate.
Here's what I'd want to know about you.
- What do you want this money to accomplish?
- When might you need it?
- What else do you own?
- What are you most worried about getting wrong?
- If we improved this part of your financial life, what would that allow you to do?
Money isn't lazy because it's sitting in cash. It's lazy when we can't explain why it's there.
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