March is likely to be a fairly unique month for my finances, with a couple of one-off cash inflows expected.
Firstly i expect some time around the middle of the month to receive a share of some family inheritance. Whilst only representing a few months expenses, it will add to my cash reserves and would be readily available for investment.
Towards the end of the month i should also receive a lump sum related to my employment. Again, this will be in the form of cash and therefore readily available for investment.
I expect the combination of these to push me well in excess of 30% of my assets held in cash, much higher than my 20% medium term target.
My initial thoughts are to hold a reasonable proportion in easily accessible accounts both for emergencies and to be ready for investment opportunities. However, given the size of my buffer and positive monthly savings rate, i'll probably tie some of it up in time deposits to get a better return. I may also add to my holidays/luxuries budget for the year.
Whilst its a nice dilemma to have, i really do need to give some more thought to how best to manage my cash reserves, and in particular finding a balance between ease of access and maximising return.
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