Maximizing on liquid savings during a personal financial crisis

During an economic collapse, it is possible to maximize on your liquid savings. Cash accounts such as savings, checking and money market accounts and certificate of deposits – the CDs as well as government investments which are short term, will be able to help you when in a financial crisis. You will want to ensure that you turn some of the resources first as their value don’t fluctuate with the conditions of the market unlike the index funds, stocks, ETFs – exchange traded funds, and other instruments of financial that you could have invested in.
It means that, you will be able to take money out at whatever time without being able to incur any losses financially. And also unlike the accounts for retirement, you will not face any penalties for early withdrawals or have to incur penalties for tax when you withdraw your money, except when it comes to CDs which do require that you have to forfeit some of the interests that you will have earned if you decide to close early.
You don’t have to invest in stocks or other investments which are high risk until you have cash in liquid accounts of several months. So how much cash do you require? It will all depend with your obligations financially and the tolerance of risk.
If you happen to have an obligation like child tuition payments that are ongoing or a mortgage, you could require that you have several months of expenses which need to be saved up if you are single and in an apartment which is rental. A cushion of about six month’s expense might be considered to be a bare minimum.