How should one store one's savings if one has under $5000 saved? Should one keep it all in one savings bank account? Or should one diversify? If so how? General advice is welcome.
Buy low sell high
>>1011636
1. Eliminate any outstanding debts. The preference would be high to low interest. In general that would be credit cards then private loans, followed by collateral loans and housing.
2. Create an emergency fund with 3-12 months worth of living expenses. This range is mostly due to circumstances. A married couple with two incomes and family help would likely only need a small buffer of cash.
Someone who is alone, with no outside assistance, and a single income would be better off having a larger emergency fund to protect against the unforeseen. I have enough money to live for a month in a safe, then the remainder in an online bank. They can have interest rates around 1%, which is probably the best that can be done while keeping the money liquid and movable.
It's only 5k, put it in one account with a high interest rate.
Why would you want to create a nuisance over 5k?
>>1011663
This.
> A married couple with two incomes and family help would likely only need a small buffer of cash.
Anyone regardless of their family situation and income should have 3-6 months of expenses in cash at all times. You never know when a big expense will come up.
