Know the 4 uses of cash

   It’s important to have cash available for your everyday spending and the inevitable rainy day. 
   But to contribute to your long-term financial success, you’ll want to follow a more comprehensive cash strategy.
   First, you’ll need a few months’ worth of living expenses in a checking or cash management account to meet your everyday spending needs, such as your mortgage, utilities, groceries and so on.
   You can also use cash to establish an emergency fund to pay for things like major car repairs or a new furnace.
   You’ll want to keep the money in a liquid, low-risk account.
   And if you have a short-term savings goal, such as a wedding or a vacation, you might want to set up an account specific to this goal to prevent dipping into everyday spending or an emergency fund.
   Finally, you’ll want to keep some cash in your investment portfolio, both as a means of diversification and as a source of funds to buy new investments or more shares of ones you already own.
   As you can see, cash can be valuable in several ways – so use it wisely.
   This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.

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