If you’re an investor, you no doubt pay a lot of attention to your stocks, bonds, and mutual funds.
But you shouldn’t forget another key element of your financial strategy: cash.
Cash can help you in several ways.
First of all, it’s a good idea to have a few months’ worth of living expenses in cash to pay for unexpected expenses, such as a major home repair.
Also, cash can help you meet short-term savings goals, such as a wedding or a long vacation.
And of course, you’ll need a reasonable amount of cash to meet your everyday spending needs — your mortgage, groceries, and so on.
Finally, you can use some of the cash in your portfolio as part of a systematic strategy in which you place set amounts of money at regular intervals into investments that are appropriate for your goals.
Still, you don’t want to keep so much cash that you underfund your longer-term investments — the ones with the growth potential needed to help you reach your retirement goals.
Put your cash to work for you.
By using it wisely, you can add a valuable element to your financial picture.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
