One of the few personal finance concepts that garners near-universal praise is the idea of having some cash reserves.
For many topics in personal finance, there are seemingly as many critics as there are advocates. You commonly hear phrases such as:
- “The stock market is too risky,” or
- “You can’t retire early because you need health insurance,” or
- “You shouldn’t travel because it’s wastefully expensive.”
I don’t agree with any of these perspectives, but you hear people offer them as feedback nonetheless.
Thankfully, few people disparage having cash reserves because they should be an essential component of everyone’s personal finances. Most of the time.[Read more…] about Cash Reserves 101: Why You Need an Emergency Fund