Cash (bank deposits, broker free cash, money-market-like balances) is an asset class — even when it feels like “not investing yet”.
Jobs cash does well
- Emergency fund (rent, job loss)
- Near-term spending (≤ 1–3 years)
- Rebalancing dry powder
Jobs cash does poorly
- Beating long-term inflation on its own
- Sitting forgotten across five broker apps
Opportunity cost
If your long-term target is 80% equities but you hold 25% cash “waiting for a dip”, you have a different portfolio than you think. Timing the all-clear is harder than it looks.
Multi-broker cash audit
List free cash in every account once a month:
| Account | Cash | Purpose |
|---|---|---|
| Bank | €… | Emergency |
| Broker A | €… | Next ETF buy? |
| Broker B | €… | Idle? |
Idle balances are a common leak in multi-broker setups — a unified dashboard makes them obvious.
Rule of thumb starters
- Emergency fund in a safe bank/savings product first
- Invest surplus on a schedule (DCA) toward your target allocation
- Keep tactical cash deliberate and capped (write the % down)
Key takeaways
- Cash is a decision, not a default leftover.
- Separate emergency cash from investment cash.
- Hunt idle balances across brokers regularly.
Educational only — not personalised investment advice.