Personal Cash Runway

Do you know your personal cash runway?

How many months your household could keep going if income stopped tomorrow?

Most households have one of two problems: Too little liquidity (wealth they can't reach), or a cash buffer that costs them every day. Few know which one applies to them.

𝗣𝗿𝗼𝗯𝗹𝗲𝗺 𝗼𝗻𝗲: Too little liquidity. Even households worth £1m+ hold nearly everything in property and pensions (ONS). Wealth on paper, but very hard to reach when something breaks: a job loss, a rate change, a divorce. A big net worth statement can't pay the bills.

𝗣𝗿𝗼𝗯𝗹𝗲𝗺 𝘁𝘄𝗼: Too much idle cash. Around 30% of European households' financial assets sit in cash and deposits (Eurostat), much of it treated as the "safe" part of the portfolio. But run the numbers on that safety. Earn 1% in interest while inflation runs at 2-3%, and your 'safety' is now quite expensive.

Neither problem means the answer is obvious. Liquidity has real value; it just isn't free. The right balance is personal and always moving: a new mortgage, a second child, a bonus, a rate change, and your ideal runway this year isn't necessarily same as last year's.

That's why we built Senso to keep two numbers in front of you at all times: your cash runway and your liquidity ratio, the share of your wealth you could reach within days or weeks. Too low is risky. Too high, and you're paying that daily cost without seeing it. Boring numbers. Until they're the only ones that matter.

Be senso.