ASK AN ADVISOR Op-ed: Why cash is king for emergency funds and queen for short-term savings
Articles about emergency funds may have put you to sleep as recently as a year ago. You would have been lucky to find a high-yield savings account paying out 1%-2% at that time.
However, with interest rates soaring, cash investments can post sizable returns, driving some of the highest interest payouts in decades. This is the perfect time to make a case for why building an emergency fund is essential in high- and low-interest rate environments.
Where to Keep Your Emergency Cash
By: Stacy Francis
May 22, 2023
An emergency fund is a cash cushion of roughly three to six months of living expenses. If your job is unstable, a family member has significant health issues, or you are solely responsible for all your bills, you should aim for even higher amounts. It is not unheard of to see emergency funds covering a year’s expenses. Having this extra cash buffer will protect the wealth you’ve built so that no situation can jeopardize this and cause your financial world to crumble.