The importance of having a cash reserve “rainy day fund” has really been exposed by the new normal created by the world’s reaction(s) to COVID-19.
We recommend our clients maintain between 90 to 180 days of their spending in cash reserves. Typically, the funds are held in a money market savings account with the bank where they have a checking account. The range of 90 to 180 days is really dependent on the comfort level of the individual, among other factors.
As we return to our normal routines, don’t forget to start and or rebuild your rainy day fund.
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