‘Cash savings’ is describing liquid funds that are relatively quick and easy to access in emergencies. Because we are now in a time when emergencies are getting more expensive due to the risig cost of living.
Many people in America have some money locked away in IRAs and 401k accounts for retirement (though a lot don’t). But if you try to access that for emergency expenses you get penalized heavily via charges.
And your response is why this survey result is probably a useless stat. Most Americans don’t understand the term liquid assets, so instead they ask about access to cash. But many people understand the word cash to only mean paper money.
Why cash? I have maybe 100€ in cash savings but 5k+ in total savings
‘Cash savings’ is describing liquid funds that are relatively quick and easy to access in emergencies. Because we are now in a time when emergencies are getting more expensive due to the risig cost of living.
Many people in America have some money locked away in IRAs and 401k accounts for retirement (though a lot don’t). But if you try to access that for emergency expenses you get penalized heavily via charges.
Edit: fixed a couple of typos.
You can loan yourself money from 401k at about 6% interest paid to yourself, better way to avoid the penalties.
Ah good to know. That is a confusing expression
And your response is why this survey result is probably a useless stat. Most Americans don’t understand the term liquid assets, so instead they ask about access to cash. But many people understand the word cash to only mean paper money.
Liquid assets? Like my Tupperware full of gasoline?
Whoooooaaaa. I wouldn’t go around letting people know you’re stockpiling wealth like that