Personal Financial Success Blueprint pt 2 "mini-emergency fund" E126: Talking Money in the Morning LIVE!
Part one of this series we talking about CashFlow Mastery. That basically means you want to become a better steward of every dollar that hits your hands and free up as much of it as possible to put it to work for you. Now that you've done that the next logical questions is..."what do I do now?"
The first thing that we recommend is that you build a mini-emergency fund. This is a $3,000-$5,000 fund that will keep your wealth build game plan on track in the event the furnace goes out in the middle of winter. Once you master your CashFlow spend the next few months taking all of your disposable income and putting it into and account as a mini-emergency fund until it reaches at least $3,000.
This money can be placed in a money market account early on but the best place to put it according to my mentor, who by the way has cashflowed over $600M using this same game plan, is a municipal bond fund. The money is still accessible but the interest rate is usually 4%-6% versus 1%-2% for the average money market account. Check out the replay of Talking Money in the Morning LIVE where I go into greater details below.
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E126: Talking Money in the Morning LIVE!
H Cortez aka Financial Health Mentor to the Working Class
Dave Ramsay Course