You need some cash on hand that is accessible enough that you can quickly get to it when things happen. The downside of holding a lot of money in a savings account is that the bank doesn’t owe you anything anymore due to the low interest rates.
You’re paying a price on liquidity, trapping money in a low to no interest bearing account, when it could be doing multiple things at the same time. That’s where we segue to our uncommon roots and show you how to mobilize an emergency or capital fund that works for you.
Savings or capital is the springboard into investing. When you look at buying that first rental property or Airbnb, you need a down payment. You need money in the bank. If you want to launch that business or start investing in the stock market in an after-tax (now) money type of account, you need capital and a cushion. One of the leading causes of entrepreneurs failing is a lack of capital.
This amazingly simple worksheet will help you determine if you are investing to support your goals. The goal of the worksheet is for you to see on one page the two different types of money you have.