No. of Recommendations: 14
8. Always keep enough cash on hand to cover potential sudden needs, such as home or car repairs.

I'm not sure why so many people recommend this. Yes, it might be a good idea, especially if you are younger and maybe living paycheck to paycheck...but then you probably can't do it in that case.

But if you are concerned with keeping "only" $250K per bank to get the FDIC insurance then I would think that you have good enough credit to have at least one credit card with a high enough limit to cover any "emergency" car or house repair. Pay with the credit card, then you have a few weeks to decide what assets to sell before the bill is due.

Of course you might want to have cash (or not) as part of your asset allocations.

Mike
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