What is it? Comfort-cash is like comfort food. In times of difficulty it sustains and soothes. Comfort-cash is also referred to as an “emergency fund.” At The Silver Purse, we regard this as a first step to financial security.

Who needs it? Everyone should have it, since no one is immune to life’s challenges, like job losses, car breakdowns, health problems or other expenses that can eat through bank accounts quickly and leave women with money worries.

If you want to invest, having a comfort-cash fund in place is a prerequisite. Then, when you need money for life’s unexpected challenges, you won’t have to sell long-term retirement accounts or borrow from high-fee credit cards. Having a comfort-cash fund is a personal finance cushion we all need.

Where’s a good place to park cash? Keep it where you can get to it quickly. Bank savings accounts and money market accounts, or money market mutual funds are good choices.

Three month certificates of deposit (CDs) or Treasury bills work if you have other sources of cash to cover you for the term those are locked in.

How much do you need? You should have at least $1,000. Most financial planners suggest 3-6 months of living expenses, to be more secure. Yes, you won’t be earning much on it, but this is not an investment. It’s a safe parking place.

Resource – Use an emergency fund savings calculator to see how fast you can save at the rate that’s comfortable for you. (link to