Do You Have Too Much Money in the Bank? Ask These 3 Questions, Says Rachel Cruze
Is there such a thing as having too much money in the bank? You might think it’s a good idea to stockpile tons of money in a bank account, but money expert Rachel Cruze wants you to step back and think about what this strategy really means for your financial picture.
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In a March 2026 video from The Rachel Cruze Show, Cruze shares the top three questions to ask yourself to make your financial goals more specific. Answering each question will help get your accounts under control and allow you to continue building wealth.
1. What Does It Mean To Have Enough Money in the Bank?
It may feel powerful to have a lot of money in a checking or savings account, but this ratio doesn’t make sense if you’re in debt. For those in debt, it’s time to simplify these accounts and pay off what you owe.
Cruze said the emergency fund you need consists of $1,000. This isn’t a lot of money to live on, but Cruze said those paying off debt are throwing as much money as they can to clear the balance in full. Once you’re debt-free, Cruze recommends bumping up the emergency funds’ savings to cover three to six months’ worth of expenses and move on to making other investments.
2. Should I Keep All of My Money in the Bank or Somewhere Else?
You’re probably seeing a lot of your income moving in and out of your checking account every month to pay for bills and expenses. What about the money sitting in savings? How can you make your savings work for you?
If you have an emergency fund or another type of savings, Cruze recommends putting these funds in a high-yield savings account. This allows you to earn 3% to 4% interest compared to a traditional savings account where you’re not likely to earn anything.
From here, Cruze said it’s time to start investing 15% of your income into retirement accounts. Start by opening a 401(k) or 403(b) [see which one your employer offers and take advantage of any matching programs] and a Roth IRA.
3. What Should I Do With the Money in My Checking Account?
This money is here to cover expenses, so Cruze recommends making a budget (if you don’t already have one) and tracking expenses every month. You can create this budget using a traditional approach, like writing it out, building it out with an Excel spreadsheet or utilize an app.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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