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Money Girl
115 MG Where to Stash Your Cash
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Contact us before canceling entire account to continue bill credits or credit stop and balance on a required finance agreement to bill credits and if you pay off devices early, ctmobile.com. Hello and welcome to Money Girl's Quick and Dirty Tips for a richer life. I'm your host, Laura Adams. This show is about the best places to keep your cash safe, yet still working hard for you. In the last episode, I discussed the importance of building up an adequate emergency fund. I think about emergency funds as serving the same purpose as a moat that surrounds a fort or castle. This water-filled barrier fortifies and protects the structure from invaders. Emergency funds can help keep our household financially safe from harmful circumstances that might show up unannounced in the middle of the night as well. The definition of an emergency is a sudden unforeseen crisis that requires immediate action. So when we're talking about money that you put aside for an emergency fund, there are some special considerations for the best way to handle those funds. If we're ever faced with a situation such as the loss of a job or business, time is of the essence. Emergencies just can't wait for a CD or bond to mature or for you to sell a valuable asset. Emergencies also don't want to hear that your cash may have shriveled up in a declining stock or mutual fund. The bottom line is that emergency reserves are a special kind of short-term savings fund that must be kept completely safe and secure for the unanticipated predicaments of life. A useful emergency fund has three criteria. Number one, it should be large enough to get you through the crisis. Number two, it should be easily accessible and three, it should be held in cash. So where can you stash your cash for the best combination of liquidity and safety? You could keep it in your mattress for the ultimate in accessibility, but that's too accessible for most people. It might be too tempting to spend cash that you have sitting literally right under you. And remember that cash kept at your home is usually not protected against theft, fire, or other damage. However, keeping a small percentage of your emergency funds at home can be a wise idea. Consider being prepared for a situation such as a natural disaster that could make getting your cash difficult or impossible. For example, in a hurricane or flood, local banks could be temporarily closed. Or if there's an ice storm that causes widespread power outage, ETMs near you may not be working. People who live in rural areas may have difficulty getting to banks during times of challenging weather. Mother Nature dishes out lots of reasons for us to keep a reasonable amount of emergency money in a safe place at home in order to survive her occasional tirades. For the majority of your funds, seek out the safety of an interest-bearing account at an FDIC and short institution. This will keep your money federally protected and give you some interest income. September is a great month for planning. We start thinking about the rest of the year, whether it's back to school, big year-end work projects, holiday plans, or travel. Planning ahead is crucial in life, especially when it comes to what happens when you're gone. Getting life insurance may sound daunting, but Policy Genius makes the process a breeze. With Policy Genius, you can find insurance policies that start at just $292 a year for a million dollars of coverage. Some options offer same-day approval and avoid unnecessary medical exams. Policy Genius' technology lets you compare quotes from America's top insurers in just a few clicks to find your lowest price. It's the country's leading online insurance marketplace, and if you ever need help or guidance, they have an expert license support team to answer your questions, handle all the paperwork, and advocate for you throughout the process. It's never too late to plan ahead. Go to PolicyGenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's PolicyGenius.com. Now at T-Mobile, get four 5G phones on us and four lines for $25 a line per month when you switch with the eligible traders, all on America's largest 5G network. Minimum of four lines for $25 per line per month without a paid discount using debit or bank account, $5 more per line without auto pay, plus taxes and fees and $10 device connection charge. Phones will be at 24 monthly bill credits for well qualified customers. Contact us before canceling entire accounts to continue bill credits or credit stop and balance on a required finance agreement too. Bill credits and if you pay off devices early, see T-Mobile.com. We wear our work day by day, stitch by stitch. At Dickies, we believe work is what we're made of. So whether you're gearing up for a new project or looking to add some tried and true workware to your collection, remember that Dickies has been standing the test of time for a reason. Their workware isn't just about looking good. It's about performing under pressure and lasting through the toughest jobs. Head over to Dickies.com and use the promo code workware20 at checkout to save 20% on your purchase. It's the perfect time to experience the quality and reliability that has made Dickies a trusted name for over a century. Compare money market to positive counts or other high yield savings accounts offered by your local bank or credit union. Also, check out national offers on bankrate.com. Here are some features to consider when evaluating different accounts to park your emergency money in. Number one, interest rate. How much is the institution paying for the privilege of keeping your money on an annual basis? Number two, minimum balance. Does the amount you can deposit right away qualify for a good interest rate? Number three, access options. Can you get checks, a debit card, and move money online? Number four, the number of allowable transactions. How many checks can you write per month or year? How about withdrawals or transfers? And five, account fees. What penalties or fees are charged? Remember that a money market deposit account is not the same as a money market fund. Money market funds are investments offered by mutual fund companies or brokerages. They invest in relatively safe securities such as U.S. Treasury bills and certificates of deposit. Even though they may be offered by some banks, money market funds are not FDIC insured and cannot guarantee that your investment won't decline. Money market deposit accounts on the other hand are more like savings accounts that offer limited features of checking accounts. They bear interest but restrict the number of transactions to third parties to six per month. At most banks, only three of these transactions can be paid by check and the remaining three can be transfers or withdrawals. When it comes to an emergency fund, it's best to ensure its safety and liquidity above all else. This will preserve your money so it's there when you need it most even if the stock market is tumbling. I'm glad you're listening. Cha-ching. That's all for now. Courtesy of Money Girl, your guide to a richer life. Get money girl and other great shows from quick and dirty tips streamed to your iPhone. Download Stitcher free today at Stitcher.com. With the five dollar meal deal at McDonald's, you pick a McDouble or a McChicken, then get a small fry, a small drink, and a four-piece McNuggets. That's a lot of McDonald's for not a lot of money. 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