The Canadian Money Roadmap Are Canadians holding too much cash?
Apr 8, 2026
They debate why Canadians boosted their cash holdings and what macro factors drove the shift. They break cash into three practical buckets: emergency funds, planned short-term spending, and a personal “sleep-at-night” buffer. They caution against market-timing and explore alternatives like dollar-cost averaging, bonds, and assigning a clear purpose to excess cash.
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Sleep At Night Cash Is Personal
- 'Sleep at night' cash balances vary widely by person and are a valid personal finance input, not a one-size rule.
- Evan suggests naming that number and questioning unused excess to assign purpose or reallocate.
Wealthy Investors Sometimes Keep Big Cash Buffers
- High financial literacy doesn't guarantee low cash holdings; Morgan Housel keeps 20% of liquid assets in cash by design.
- Intention matters: well-informed investors may still prefer cash for peace of mind and timing flexibility.
Too Much Cash Costs Inflation And Opportunity
- Excess cash carries two main costs: inflation erosion and opportunity cost versus balanced portfolios like 60/40.
- Whether it's 'too much' depends on goals, required risk, and whether the saver can still meet objectives conservatively.
