“Why do I need all this cash sitting around?”
“What’s really going to happen to me?”
“Everything is great! What could go wrong?”
These are all famous last words. Life can happen fast and the only way to cushion the blow is to have enough cash to cover yourself in the event of an emergency. How much cash do you need? Well, its up to you, but the recommended emergency fund is enough to cover ~6-7 months of monthly expenses. While I know that keeping cash actually losses you money to inflation, it’s a small price to pay for the peace of mind. A high interest saving account is a great place an stash your emergency fund so it is accessible, but you’re still better interest than the traditional bank. Even though interest rates are low, and will continue to be for the foreseeable future, you’ll still be surprised at how much more interest you’re getting on a monthly basis compared to a normal savings account. Here is a list of high yield savings accounts: https://www.nerdwallet.com/best/banking/high-yield-online-savings-accounts
The hidden emergency fund… your credit card points.
Here is yet another reason to make sure you have a credit card that allows you to maximize the value of your points. If you’re in between jobs, or don’t feel comfortable shelling out money while cash is tight, it’s great to know that you have a bank of points waiting to be used. These can really add up if you save them over time and can take a lot of burden off your finances, especially if you have to travel.
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