I am 46, single, no kids. I am a health care professional. I feel that I'm generally a very good saver and a not so good budgeter - hence the credit card debt payoff I worked through in 2020.Last week I ended up moving my emergency funds for 2 reasons:
1) My credit union no longer allowed Mint to sync with their instiution.
2) I found a better rate through information shared on the forums.
I suppose I could have put the funds in a CD, but I feel like I wanted them to be a little more liquid. Of course, I often change my mind so that's subject to change.
November 25th, 2022 at 01:16 pm 1669382178
You can do a strategy where part is in an easily accessible, small yield account for ‘cash only’ access - which there are probably few emergencies where you need cash right away.
You can keep the bulk in laddered CDs - where maybe you put $1000 each month into an annual CD - after a year, you have access to 1/12 of your money penalty free.
There are few emergencies where you don’t have the option of using a credit card - with points or cash back - in the immediate. Then you can look into no interest cards if you need time for money to mature or pay the penalty for cashing in a cd early..
If you are not using all the space in a Roth IRA/401k, you can even park some emergency funds there using a safe vehicle like a CD so that any interest you earn is tax free.
Of course, these are not strategies for someone with credit card debt and no retirement savings - this is a strategy for someone with good credit and a stable budget…
November 26th, 2022 at 05:21 pm 1669483268