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Comfort-cash for emergency funds |
Helping women build financial security |
What is it? Comfort-cash is like comfort food. In times of difficulty it sustains and soothes. Read about it. 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 your bank account quickly and leave you 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. 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. Watch a short video from Morningstar's Christine Benz about where to stash cash and how much you need. (link to Morningstar.com) Resource--Use an emergency fund savings calculator to see how fast you can save at the rate that's comfortable for you. (link to Bankrate.com) Read our article with more details on how comfort-cash can benefit you and how much to put aside. Read Bankrate.com's thoughts on emergency money- "4 Dumb Moves in the Recession." (external link) Return to Coin Purses page |
TheSilverPurse.com |
Play a fun game show on managing your cash. |