I’m not talking about a few hundred or a few thousand, but rather a minimum of ten thousand and more than twenty thousand. Working with clients with various incomes, net worth’s, and feelings about money allows me to see things from many different angles. Just this year I’ve seen client’s need a new furnace ($2,400), take advantage of a surprise vacation opportunity ($7,500), buy a new Winnebago at retirement ($70,000), have a daughter get married ($30,000) and a couple have been downsized out of a job and paycheck.
One thing is ALWAYS true, people love the peace of mind that comes with a large stash of liquid cash. It would be nice if it earned more than 0.1%, but it really does not matter. If you don’t have a large stash of cash you just don’t have the peace of mind that you could.
Benefits of having large stash of cash:
- taking advantage of sales on non-durable goods
- travel – weekend getaways or major family vacations
- home improvements
- less worries if investment values decline when you are not depending on using that money in the near term
- can keep higher insurance deductibles when your cash allows you to self-insure – saves you premium
- never have to worry about credit card debt – need I say more
If you have a large stash of cash, why do you have it and how have you benefited? Please share…
I understand that talking about creating a boring, no interest earning pile of money is not as appealing, but it is the foundation to any solid financial plan.
May I suggest if you don’t have a stash that you not wait until the New Year to make your resolution to create or put more into a cash account.
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