LANSING Mich. (WLNS) – Wondering what to do with the cash in your wallet or your checking account? Local money expert Stephen Schiestel is here for you to break down what cash is and how it can be used to build your portfolio.
Having money available for “pure liquidity” is good, said Schiestel, as cash is always usable and available whenever you need it.
It’s also necessary in paying bills and creating an emergency fund.
“Cash” can refer to real, physical money like dollars and coins, but for most people cash is what’s in their checking accounts electronically.
Schiestel says it’s good to have a supply of cash on hand in case an unexpectedly good investment appears, such as a good deal on a car or a sudden new investment opportunity.
“Sometimes we have goals that are going to present themselves … having those dollars in cash makes a lot of sense,” said Schiestel.
Schiestel also recommended investing in a certificate of deposit (CD). A CD is an investment where customers of banks/credit unions deposit a lump sum of money in for the bank to use. These can yield high profits with low risk, but the money must be kept in the bank for a predetermined amount of time.