Having Some Cash Assets
Just as much I realize that having cash sitting on a bank account is not a very efficient way of letting money work for itself, just as important I believe it is to have an emergency cash account available. When investing money, there are many ways and methods to reduce risks or to manage a portfolio. But you can never know when you need cash instantly, and fast.
Some people claim, you should have at least as much cash at hand, enabling you to cover for your expenses for at least 6 months. I believe, 12 months is more realistic. I am not there yet, but working on it.
