Gotta have cash !

I always enjoy reading stories that stress about the importance of having an emergency fund. Here's one from Vanguard.

With so much publicity about saving for long-term financial objectives—such as retirement, purchasing a home, or investing for a child's education—it's important not to overlook the importance of setting aside money to meet your short-term emergency needs as well.

According to David R. Brown, CFP®, a senior manager in Vanguard Advice Services, a cash reserve, or "emergency fund," should be a part of every investor's portfolio.

"It's better to be safe than sorry," he said. "Nobody can anticipate when the roof will have to be repaired or an appliance will need to be replaced. The idea is to try to find ways to live below your means so that you can save for retirement and other long-term goals but at the same time make it a priority to set money aside in the event an urgent need arises."