{"id":33,"date":"2009-02-07T19:59:52","date_gmt":"2009-02-08T01:59:52","guid":{"rendered":"http:\/\/dennissherman.com\/dennis\/?p=33"},"modified":"2009-02-07T20:00:17","modified_gmt":"2009-02-08T02:00:17","slug":"cash-reserves","status":"publish","type":"post","link":"http:\/\/dennissherman.com\/dennis\/2009\/02\/cash-reserves\/","title":{"rendered":"Cash Reserves"},"content":{"rendered":"<p>I find that tax season is always a good reminder to do a financial review.\u00a0 If you read financial planning information at all, you&#8217;ll find that everyone recommends that you build up a cash reserve and keep it somewhere safe.\u00a0 The definition of how much to keep, and where to keep it varies.<\/p>\n<p>In my case, I want to keep 6 months of expenses in cash reserve, distributed this way:<\/p>\n<ul>\n<li>1 month expenses reserved in my checking account (over and above current expected expenses)<\/li>\n<li>2 months expenses reserved in a savings account<\/li>\n<li>3 months expenses in CDs<\/li>\n<\/ul>\n<p>So if I know I spend $3000 a month, I&#8217;ll want $3000-$6000 in checking, $6000 in savings, and $9000 in CDs.<\/p>\n<p>I use a checking account which pays at least a little interest and no service charge.<\/p>\n<p>I currently have most of my savings in an online bank savings account, which is paying better than average interest.<\/p>\n<p>I keep the CD funds in 6 month CDs, with offset expiration dates, so every month a CD renews, with each CD renewing twice yearly.\u00a0 If I should need this reserve, I&#8217;ll almost certainly be able to wait until the natural termination of the CD, and simply stop the renewal.\u00a0 That will save me the interest penalty for early termination.<\/p>\n<p>I reinvest all interest automatically, which will at least help account for inflation, and help keep my reserves updated.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I find that tax season is always a good reminder to do a financial review.\u00a0 If you read financial planning information at all, you&#8217;ll find that everyone recommends that you build up a cash reserve and keep it somewhere safe.\u00a0 The definition of how much to keep, and where to keep it varies. In my [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/posts\/33"}],"collection":[{"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/comments?post=33"}],"version-history":[{"count":3,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/posts\/33\/revisions"}],"predecessor-version":[{"id":62,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/posts\/33\/revisions\/62"}],"wp:attachment":[{"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/media?parent=33"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/categories?post=33"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/dennissherman.com\/dennis\/wp-json\/wp\/v2\/tags?post=33"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}