emergency fund

Enough Cash to Last a Crisis

The economic uncertainty due to COVID-19 has caused strain on businesses and households alike. Two weeks ago I wrote about the CARES Act and the variety of funding vehicles being rolled out to businesses and families, such as rebate checks (starting soon), penalty-free retirement distributions, and loan and loan forgiveness programs for small businesses and sole proprietors. These efforts are sure to help most Americans.

Still, times remain uncertain. Those filing for unemployment benefits in the U.S. topped 17 million last week over the course of just a three week period. Hopefully those benefits come sooner than later, but on a broader scale this has me thinking about how important it is to have access to cash in times like these.

I’d like to take some time today to consider sources of cash to help you and your family whether the financial storm we’re in, and future storms yet to come.

How to Prioritize Your Finances by Understanding Your Values

Conflicting priorities are at the heart of much of our everyday lives. We have a long list of things we know we should get done, but with limited time, resources, and energy. Unfortunately, family finances often fall to the bottom of the list.

This is a problem because our own financial picture and family goals probably look different than someone others. As a result, we need take steps to make sure our own goals are getting done, and in the right order.

As you think about how to prioritize your own financial decisions, here are some guidelines to consider.

How to Build an Emergency Fund That Makes Money Too!

It’s not glamorous or financially “sexy,” but finances rarely are. I’m talking about the less appealing elements of building a sound financial plan. For most families the first action item is to build an emergency fund.

The drill is fairly straightforward, but building an emergency fund is often reliant on manually moving money from each paycheck into a separate checking or savings account...with a rock-bottom interest rate. By month’s end, a meager 20 cents of interest has trickled into your account. Yipee.

In this post I’ll tell you how to build an emergency fund more successfully and how to earn much more interest on your savings, while still keeping your emergency fund safe and accessible.

Want Greater Financial Peace of Mind? Sock Away More Cash

“Cash is king,” the popular saying goes. Of course, some also say that holding cash--rather than investing it--is money wasted. Which is it? Recent research suggests that we’re probably asking the wrong question.

When considering what cash really does for us, the research points to a greater value which may not be as obvious: Having a greater amount of cash savings actually increases one’s overall life satisfaction and financial well-being in a really big way.