kassakor

Kassakor is a term that appears mainly in Finnish-language discussions about finance and personal budgeting. It does not have an official definition in formal finance, and its meaning can vary by context. Generally, kassakor is used to denote a cash reserve or liquidity buffer kept to cover immediate expenses and to fund operations during periods of irregular cash flow. In this sense, it functions similarly to a cash emergency fund for households or a cash cushion within a business.

In practice, descriptions of kassakor emphasize several features: a target size based on factors such as monthly burn rate, revenue volatility, and the length of potential disruption; liquidity and accessibility, typically held in readily usable accounts or short-term instruments; governance or rules around how funds are contributed, monitored, drawn down, and replenished; and a purpose of preserving operational continuity rather than earning a return.

Uses vary from corporate finance discussions to personal finance advice and occasional cultural or online contexts where the term is used metaphorically. Critics argue that kassakor can lead to excessive liquidity at the expense of investment in growth, while an undersized kassakor increases financial risk; optimal levels depend on risk tolerance, cash flow patterns, and external conditions.

See also: cash reserve, liquidity management, emergency fund, working capital.

Etymology: from Finnish kassa meaning cash or cash register and -kor as a productive suffix in compounds indicating a reserve or stock.