JW’s Financial Coaching Podcast Lesson #7-What to do with all your extra cash


Highlights of today’s show:

  • Answer a question from a listener
  • Where to put all your extra cash from savings
  • Keep your savings accounts very basic
  • Save for college using 529 and ESA accounts and take advantage of their tax treatment
  • If you are interested in audio books, check out audible.com

It’s a nice problem to have: having to find out where to stash all your extra cash. But it is an issue that will come up once you are debt free. Today’s topic is about where to put your different savings accounts. The question for today came from someone who listened to the replay of the “You are Debt Free . . . Now What?” Teleseminar.

You want to keep your emergency, vacation, car, and other savings account(s) separate from your general account so that way you know how much money you have in savings. For anything that you are planning to use in less than three years, I recommend using a simple savings account. Yes, you won’t make very much interest, but the money will be there when you need it and you don’t have to worry about it being tied up in stocks.

Should you have a separate savings account for each thing you are saving for? You can and I would recommend you keep you emergency savings account separate, but keeping your other savings separate is up to you. I personally use the non-monthly and savings worksheet to help keep track of our savings accounts.

In addition, for college savings use either an ESA or a 529 plan. Those plans have special tax advantages over investing them yourself. For more information, check out the video I did for Financial Literacy Month on college savings or check out the podcast I did explaining ESA and 529 plans.

In addition, if you interested in listening to books I highly recommend you check out audible.com and sign up for their free 30 day trial. My wife and I have really enjoyed what audible offers and you can actually get a free audio book by signing up.

You can subscribe to future Podcasts through FeedburnerStitcher SmartRadio, or iTunes. Or you may listen to the podcast on the JW’s Financial Coaching Facebook Fan page. In addition, if you have enjoyed the show for a while now, please leave a review of the podcast on iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes. Big thanks to my friend Glen Steinson for helping me create the video.

If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. There are two ways to get in touch with me:

1.) Email me at JWFinancialcoaching@gmail.com – Please put “podcast” in the subject line and keep your questions brief so they are readable on air.

2.) Simply fill out the form on the contact page. Please fill out your name, email, and your question/comment/suggestion and we will read it on air.

You can find prior editions of the podcast at the podcast archive page.

This entry was posted in Budgeting, Personal Story, Podcast and tagged , , , , . Bookmark the permalink.