liquid fund

 

When is it okay for you to borrow from emergency fund savings? In short, Rob’s security bucket is in a high interest liquid account, which does not penalize him for making withdrawals. Sometimes, he will borrow small amounts from the fund for short term, small return investments. Of course, his wife Claudia approves each investment opportunity. She usually knows the other principals involved.

Short Term Financial Investments - Borrow From Emergency FundBorrow From Emergency Fund For Short Term Investments

During our Inner Circle Community Q&A Time, Joe asked Rob to clarify a facet of his security bucket strategy. Does he invest in a traditional bank for the advantage of liquid cash that is easy to withdraw?

Rob’s answer is yes. He likes the advantage of being able to borrow from emergency fund if needed. Rob invests in high interest accounts, eschewing low return options like CDs that also penalize withdrawals.

Occasionally, Rob will withdraw a small amount for short term financial investments. He only will do this if it is a safe investment with a high return. His wife Claudia also has a say in these money plays. Usually, she has met the folks involved in the investment and can vouch for their character. Soon enough, the cash will return to the emergency fund, with a little interest!

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Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!