CDs will work better if rates are dropping. MMA will work better when rates are going up. Over time they will both beat a savings account.
Liquidity is important.
A good way to create an EF is to add a line item in your budget to pay yourself 10% or 15% from each check. Send this money to a different account.
For example, if you sent $600/month (assuming you made $6000/month gross) to an IRA, that IRA would be maxed out in 8 months. The other 4 months let that money go into a CD, MMA or seperate account for emergencies.
__________________
- General questions get general responses. Specific questions get better responses. Want a better answer? Re-read my signature LOL
|