So How Much Cash Reserve Do You Need For An Emergency or Opportunity?

Liquid Reserves
Cash Reserves
How Much Needed?

As the first post in a series of several financial recommendations…

So How Much Cash Reserve Do You Need For An Emergency or Opportunity?

In personal finance, cash reserves are primarily short-term, highly liquid investments that earn a low rate of return that individuals want to have quick access to…for purposes of  meeting short-term, emergency or opportunity funding needs. We will discuss how much is recommended, how to create your cash reserve, where it should be kept and why it is so very important to your financial well-being!

________________________________________________________________

Ameriprise Financial

Refine your cash strategy

In times of crisis, you don’t want to be shaking pennies out of a piggy bank. Having a financial safety net in place can ensure that you’re protected when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds that can help you meet emergency or highly urgent short-term needs.
Read more:

________________________________________________________________

Importance of Cash Reserves

James Kenney  on YouTube

_______________________________________________________________

In my humble opinion, Cash Reserves are the cornerstone of the process of effective comprehensive financial planning. In order to know how much money you should allocate on a consistent savings plan for your cash reserve, it is necessary that you develop a budget which includes all of your income,  expenses, payments, insurances, mortgage, fees…really everything that  represents money incoming and outgoing…and then you will know what you will need per month so as to then calculate how you can save for your cash reserve. If your net outgo is $4000 per month then in order to save a cash reserve equivalent to six  months of your living costs, then you will need a cash reserve of $24,000 to equal a six month cash reserve. Now that you know  how much you need you can make determinations as to where that money will need to come  from. A qualified financial advisor can be very helpful in achieving this.

Now I would like to again come back to my goal of establishing some good two-way communications between you and me.  Recently I asked that you give me  some feedback in the “Leave A Reply” section at the bottom of the page. I continue that request however let me give you a survey to choose from about those things that you may or may not like so that I  can get an  idea of what you enjoy most. If you would please select from the list below one or more of the topics that you like to read about and type each into the  “Leave A Reply” box that would be very good…thank you in advance! Here are the topics….

  • Attraction Marketing/Content Marketing
  • Blogging
  • Legal Services
  • Small Business
  • Financial Independence
  • Business Opportunity
  • Music
  • Other (not listed but on topic)

Dan Norris

Be Successful
Dan Norris

Small Business Consultant

Author

 

Does Your Financial Plan Rely On Buying Lottery Tickets?

Social Hour In London
London’s Pubs

Today’s post is on one of my favorite topics…

Does Your Financial Plan Rely On Buying Lottery Tickets?

Most everyone that I know nowadays is saying…I wish I had more money to manage…however where there is a will there is a way…and many are saying… I am making great progress every day towards my goal of financial independence…that time when I am in total control of my time and my lifestyle…and I have no financial concerns ever for the future other than properly managing my wealth.

Yesterday we saw the Minnesota gentleman Paul White who won the $86 Million (before taxes) as his third of the Powerball Jackpot…he kidded about a family gathering recently where he was identified as the one most likely to rely upon winning the lottery as being “his financial plan”. This gentleman and his family and friends (see video below) are one lucky group as the odds for winning a 6-ball Powerball Lottery are in the range of 1 in 15 million. If you like these odds to plan your future then go for it…and I wish you luck. I prefer to rely upon the philosophy of hard work, committed to goals, never give up approach to achieving lifelong dreams approach…how about you?

And that opens dialogue on my next post for a series of pragmatic, practical recommendation steps that can be very valuable in helping you to reach your goals. I am going to give these suggestions as steps on  “The Road To Financial Independence” that I have found to be really important. I am speaking as a layman, with a lot of personal and professional experience, to share with you financial experiences so that you can proceed to the next level of learning and professional assistance whenever your situation justifies that you do so.

At the outset I want to make it clear that I truly support and recommend professional “comprehensive financial planning” for anyone that wants to improve themselves financially. By professional “comprehensive financial planning” I mean with those financial advisors who are truly qualified and act in the best interests of their clients. At the same time I am very reluctant to recommend everyone who calls themselves a “financial advisor” or “investment advisor”. These terms are so misused and vague that to me it does not have real meaning. My recommendations do not include those who just want to work with your investment assets like stocks, bonds, or commodity investments like gold and silver. Financial decisions affect all aspects of our lives and for a professional to give advice on financial matters to an individual I firmly believe that any recommendations should be based on information that includes a full understanding of the individual’s goals and risks owning the assets. Investment advisors certainly have a place in the financial advisory community however I do not include these individuals as clients in my target readers.

If you are committed to achieving financial independence for you and those that you love, if you haven’t already done so, I encourage you to research the subject of “comprehensive financial planning” and to meet with three or more advisors to make a selection of whom you would most prefer to partner with to receive professional financial advice and guidance. Let them recommend your best actions and approaches on all of your key financial issues. I believe very strongly in the value of benefitting from professional services and “comprehensive financial planning” by an experienced qualified financial advisor. They can help you grow, manage and protect your assets much better with their professional knowledge.

So with this introduction to the first in a series of several financial recommendations…I know that not everyone will go out tomorrow and select a financial advisor for comprehensive financial planning however I want you to get started on the process… beginning with some of the most important initial steps. The first step I will feature in my next post is one of the key subjects of a comprehensive financial plan…that of a “Cash Reserve”.

In personal finance, cash reserves are primarily short-term, highly liquid investments that earn a low rate of return that individuals want to have quick access to…for purposes of  meeting short-term, emergency or opportunity funding needs. We will discuss how much is recommended, how to create your cash reserve, where it should be kept and why it is so very important to your financial well-being!


Powerball Winner Paul White Hilarious Press Conference After Winning $149 million Prize
martysoffice

Be Successful
Dan Norris

Dan Norris

Small Business Consultant

Author