Hmmm......actually the title may not be 100% correct, but I was curious to what degree others kept 'cash buffers' to cover life's unexpected moments. I guess 'reducing risk' is undertaken in a multitude of ways such as carrying various insurances, levels of Margin Loans, care taken in property purchase prices etc., but to what scale/degree do others keep 'cash' or extemely liquid assets as a percentage of their portfolio? This will probably depend on where you think we are in certain cycles, your age and what other financial outlays you think you may have in the near future, but after doing a couple of figures, I think I would like to slightly increase my 'cash buffer' over the coming months. What are some of the general 'yardsticks' others use? For example, I was talking to someone the other day and they keep a fixed percentage of their total borrowings in an offset account as cash. Others use other 'yardsticks'. If indeed you have 'cash buffers', what do you use?