Motley Fool Money Managing Cash Amid High Inflation
May 20, 2023
Join Robert Brokamp, The Motley Fool's personal finance expert, as he shares crucial insights on managing cash in today's high-inflation environment. Discover how traditional banks profit from customer inaction and the importance of seizing opportunities like money market funds with yields over 4%. Brokamp also discusses the advantages of I Bonds and how liquidity plays into saving strategies. Tune in for practical advice to safeguard your finances against economic fluctuations.
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Emergency Funds
- Keep 3-6 months of essential expenses in a safe, accessible account like a savings or checking account.
- Increase your emergency fund based on dependents and financial obligations.
Cash and Returns
- Cash is no longer a drag on investment returns due to rising interest rates.
- Now you can get healthy yields on savings accounts.
Finding High-Yield Savings
- Don't rely on large banks; they often offer low interest rates on savings.
- Seek online banks or resources like The Ascent for higher-yield savings accounts and CDs exceeding 4%.