Due to inflation, liquid cash loses its value and purchasing power In the long run. Ideally, individuals and families should keep as little cash as possible in their spending accounts, only enough for comfortable living expenses and emergency fund accounts. Individuals should not have an excess of cash exceeding the $250,000 limit set by the Federal Deposit Insurance Corporation (FDIC) because that is the limit amount that is insured in the case of bankruptcy; however, this should not be a concern for the average individual.