Should I save my emergency cash in a bank account, CD, money-market fund or under my mattress?
A. Nix the mattress. The rule of thumb is to save three to six months’ worth of living expenses in case of a financial emergency, such as job loss, unexpected medical bill or car repair. You’ll want to put the money someplace safe and accessible, but you don’t want it to sit in a standard bank account earning next to nothing. Go with a high-yield online savings account or money market account. These FDIC-insured offerings link to your checking account at your bank, and you simply transfer the money online. CDs are also safe, and they earn good yields, but they don’t satisfy the accessibility requirement. Your money is tied up for the term of the CD, and you’ll have to pay a penalty to cash out early. By definition, an emergency is something you do not anticipate, so it’s best to keep your money unshackled. Q. Should I take job A or job B? A. When choosing a career path, your first instinct may be to go with the one that pays the highest salary. After all, you’ve got bills to pay. While
