Can You Have Too Much Money in Cash?

I've been thinking about a question that sounds pretty simple.

Can you have too much money in cash?

Before I answer it, think about your own money for a minute.

How much cash do you have available right now, and where is it sitting?

Maybe it's in checking. Maybe you've moved it into a high-yield savings account. Maybe it's sitting inside your business. Heck, maybe you've got some tucked away at home because knowing it's there helps you sleep at night.

There's nothing wrong with having cash.

I think the better question is: What is your cash doing while you're waiting to use it?

What Do the Wealthiest People Understand About Cash?

I started thinking about Berkshire Hathaway.

As of June 30, 2026, Berkshire's insurance and other businesses were sitting on $359.2 billion in cash, cash equivalents and short-term U.S. Treasury bills, net of unsettled Treasury purchases.

Think about that.

A company known for investing is willing to keep hundreds of billions of dollars liquid.

Why?

Because having capital available gives you choices.

When an investment drops in price, you can act. When a business opportunity appears, you don't have to figure out where the money is going to come from. When everyone else is scrambling for capital, you already have yours.

Now bring that back to your life.

If an opportunity showed up tomorrow, what could you say yes to?

Your Cash Is Waiting. But Is It Working?

Maybe you've done a great job building up $50,000 or $100,000 in cash.

That feels good.

But if it's sitting in checking earning almost nothing, you're probably not thrilled about that. Put it in a high-yield savings account and at least it's earning something, but that interest is generally taxable.

Put it into the market and now you've changed its job. You may earn more, but the money you planned to use six months from now is exposed to whatever the market does between now and then.

That was the problem Terri and I wanted to solve in our own lives.

We wanted capital available because we knew life would give us reasons to use it.

But I didn't want our money sitting around waiting.

I wanted those dollars doing more than one job.

Where We Chose to Store Our Capital

That's what led us to specially engineered whole life policies and eventually to creating our own family banking system.

We capitalize our system first.

Then when we need money, we can borrow against the cash value rather than liquidating it. That allows the policy's cash value to continue growing according to the contract while we deploy the borrowed capital somewhere else.

We've done that with multifamily real estate. We've financed cars, boats and homes. We've made loans to other people. Even our kids have paid interest back into our family banking system.

The opportunity changes. The underlying system doesn't.

That's why I don't worry about having "too much cash."

I care about where that cash lives before I need it.

I want control over it. I want contractual guarantees. I want access when an opportunity comes along. And if I never use all of it, I want what we've built to eventually create a legacy for our family.

Your money is going to sit somewhere between the day you earn it and the day you deploy it.

So where is yours sitting right now?

And what is it doing for you while it's there?

If you'd like to see how we've built our family banking system using specially engineered whole life insurance, schedule a call with one of our mentors. We'll show you what we've done and help you determine whether the same strategy makes sense for your family.