Often, you hear financial advisors mention “fast cash” and having it available for the proverbial rainy day.
When I was in a chat with another F.I.R.E. believer, I noticed she mentioned where she kept her Fast Cash. I found it conflicting since her “Fast Cash” was in a High Yield Savings Account (HYSA).
There is nothing fast about using HYSA’s, especially ones associated with banks, like My SoFi Savings Account(Update: 4.5% as of October 2023). It’s nice getting a higher-than-bank average return on parked money, but I couldn’t figure out what was so fast about a HYSA’s growth?
The answer is FAST ACCESS to your CASH.
What is Fast Cash?
Fast Cash is money you set aside that is very liquid, often in Cash (“stuff in mattress”) or Cash equivalent (money market, HYSA, etc.) that you can draw upon immediately, fast, for an unplanned emergency that needs to be addressed quickly.
Update Oct 2023:
I was warned that the rear tires of my commuting car, an older Camry, were wearing down and needing to be replaced soon. I planned to save up and get them replaced at my next annual inspection appointment in a few months.
Well, I got a flat. Also, what I pulled out of the tire was a small screw. Something typically too tiny to threaten a good tire, but mine were worn. Not worn enough to force a replacement, wear indicators were still good, but enough that small items threatened the tire.
I was going to plug the tire and go about budgeting for new tires in a few months, but my work commute takes me over a pothole and debris-filled roads.
Rather than risk losing work hours or control of the car with the following a flat tire, I pulled money from my Fast Cash account and bought a set of new tires.
This is an extended example of Fast Cash and how I use it, but I hope to drive the point home.
Before we catch the F.I.R.E. drive or the F.I. Focus, many of us are strapped for Cash and only have money the same day we get paid.
By putting aside a small emergency fund(Dave Ramsey Financial Peace University: FPU Baby Step #1) and having Fast access to that Cash, I had peace of mind long before I used it recently for a set of tires.
What Is Fast Cash?
Fast Cash: Cash you can get fast in an emergency and to hold you over till your financial situation improves.
Oh, since I pulled out of my Step 1 Emergency fund, $1,000, regardless of what step I was on before, I am back to Step 1. I need to replenish that fund and get my Fast Cash balance back to my comfortable minimum of $1,000.
 Myself with an interesting Bull Sculpture. Notice: No Lambo’s. :/ | Hi I’m Tom, A Blogger And A PIG Farmer. PIG Farmer as in I grow Passive Income Generators(PIG’s). I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks. Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me. My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs. I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments. Fun Fact: In my spare time, I am a Band-Dad! |