Precautionary savings, safety cushion or cash reserve, the terms used by wealth management professionals are varied but the idea remains the same. As soon as you start receiving (or earning) money, you should put some of it aside in a very safe way to deal with the vagaries of life. It is thus a question of building up a piggy bank to meet unforeseen expenses.
We will then draw at will from this reserve, which has the advantage of being perfectly “liquid”: it can be mobilized at any time, without a technical sales delay or the risk of falling into a setback in the financial markets. Replenishing your current account by drawing on this kitty will cost less than an authorized overdraft, the most frequently offered at a prohibitive rate of 7 to 8%.
The best way to house this cash is to fill out the four books.
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