CHAPTER 8

Your Cash Stash

 

What is a cash stash? A cash stash is the capital you have saved in cash accounts that serves as your emergency fund. As we’ve discussed, cash has virtually no volatility as to the price of the dollar unit itself, so it maintains its value in these terms regardless of market conditions. Different sources promote setting aside varying amounts of reserve cash to serve as your emergency funds, but having six to eight months is a typical suggestion. I would recommend that you make it your goal to have twelve months’ worth of cash in your cash stash. Why have these additional months? If you are a freelance worker your ...

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