The Liquidity Ratio formula will establish what is reasonable. Total of cash and short-term savings divided by your short-term debts should be about 1 or 2. This means that you should have at least 100% or 200% the amount of liquid cash as you have debts due soon. This is for short term debt. If we include long-term debt like your mortgage, financial planners would like to see no more than 25% total debts ratio i.e. total debt divided by total assets. Banks use 40% but we feel it is too much and would not have the extra funds needed for a decent lifestyle and contingencies. Best to be prudent and keep debts down and cash flow high.