Cash can't cushion you from metaphysical disaster.
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Glenn Carstens-Peters |
NEARLY EVERY FINANCIAL ADVISOR on the planet advocates for having a cash reserve to cover unexpected expenses. Author and former television show host Suze Orman recommends you save eight months of expenses. Famed radio personality Dave Ramsey suggests three to six months is enough.
Sage advice if you ask me.
Costly mishaps have a way of barging into our lives without permission, and for those without a large, unallocated, cash fund, such events can have devastating effects.
Though they might differ on the recommended amount, these experts all use similar monikers to describe the account. They used words like emergency fund, safety net, buffer, and rainy-day fund.
Several years ago Katie and I decided to sell one of our sedans to buy a larger vehicle. With the adoption of our two foster boys, we had gone from zero to three children in the span of about a year, and elbow room was getting tight in the back of that Nissan Sentra.
We found a buyer and arranged to meet him at his bank the next morning.