No. of Recommendations: 2
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.

Speaking for myself, my investments portfolio is my long-term money, meaning holdings I don't want to sell until I'm good and ready to sell them, based on their own investment merits - not because I need to pay for car repairs. (OR the credit card I used to pay for the car repairs.)

Actually, I keep enough in my money market acct. at the bank to pay for my next car. I consider that kind of a luxury, having graduated from the days when I used to buy a car with a home equity loan.

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