Where I Put My Cash: A Personal Finance Strategy
My Cash Allocation Strategy: Achieving Financial Security
As both a financial writer and a Certified Financial Planner™, I'm very familiar with all the various types of bank accounts and other interest-bearing instruments Americans can use to store their cash. However, one of the most common questions I'm asked is what I do with my own money. Here's a detailed breakdown of my preferred cash allocation strategies:
Checking Account:
- Balancing the need for liquidity and modest returns
- Keeping one month's worth of expenses
Savings Accounts:
- Opting for high-yield savings accounts for flexibility and returns
- Considering investments in Series I Savings Bonds for inflation protection
Bonds and CDs:
- Planning to utilize CDs with declining interest rates
- Integrating CD ladder strategy for varied maturity terms
Personal financial strategies are subject to individual circumstances and preferences. Explore the various cash management options available to optimize your financial security.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.