Why it is important for clients to have an emergency reserve and no credit card debt to improve the likelihood of achieving their goals. Also once debt is eliminated, how can clients save more money and how compounding interest on a larger monthly savings amount can help them reach their accumulation goals.© BrainMass Inc. brainmass.com October 2, 2020, 2:09 am ad1c9bdddf
Please refer to the attached file for the response.
CASH RESERVE, SAVINGS, AND COMPOUND INTEREST
The need for cash/emergency reserve
An individual requires a certain level of liquidity in order to meet its short -term financial obligations. Aside from short-term obligations, an individual or any organization for that matter could take advantage of an opportunity to earn if a certain degree of liquidity is met. Liquidity is also important to allow the individual or an organization to meet possible contingencies or occurrence of unexpected events. All of these are the reasons behind the need for an emergency reserve.
An emergency denotes something unexpected or something that is beyond what was planned. The occurrence of these is unavoidable because of uncertainties in the future. While plans may have been ...
The importance of emergency reserves and no credit card debt for goals.