The Safest Place To Keep Your Cash

==== ==== Thrifty Living Info You Need to See Visit: Thrifty Living ==== ====

By Scott Oberholser Where is the safest place to keep your cash. In the bank? In your investment portfolio? Or, perhaps, right underneath the place you sleep every night. Don't laugh. It may be a cliche, but putting those greenbacks under your mattress will still allow you to save money. In fact, if you still stuff your cash under your mattress you are not alone. Really, it's alright, other people, besides yourself, still do it. In fact, given the current financial climate, you just might be employing the one of the best cash management techniques available given the options you have to choose from. Here's why.

Low Interest Rates-The banks right now are offering a whopping .5%-1% interest on your money.

Isn't that generous of them? The local savings and loan or credit union branch has long been considered a safe place to save your money. It still may be. However, is your money safer there earning .75% interest on average, or, at home with you? And, no, the neighborhood you live in has nothing to do with this decision. Your trust in the current activities of the management of the banking system as of late must also be considered, but we will get to that later.

Volatile Stock Market-It's like an elevator. Recently the stock market had gone up and down quite frequently. We still have not recovered from the crash in 2008 and investing your cash in the in stocks, bonds, mutual funds, or IRA,s may seem risky at the moment. History has shown us that, at certain moments, the stock market will be very unpredictable from day to day. That doesn't mean it won't stabilize itself over the long term. History has taught us that it usually does. But if short term cash management is your main concern, that mattress sure feels comfortable right now. In more ways than one.

Integrity of Financial Institutions-Lehman Brothers. AIG. The names of those two financial entities alone should send shivers down your spine. Throw in some subprime mortgage lenders and you might experience hot and cold sweats. As we all know, the integrity of the financial sector in the United States has been exposed recently. The bailout involving millions of dollars by the government to these financial institutions, which probably includes your bank, isn't news to anybody by now. Given these events, is your money truly safe in the bank? Probably. But is probably enough for you?

Especially when it comes to the safety of your money? That is for you to decide. Perhaps it is. After all, the federal government forgave your bank and many others for mismanaging their money. Part of which was yours.

I wonder if the government would forgive you for mismanaging the cash you have under your mattress? And just replace it for you. Somehow I don't think they would. Until you have complete trust in the stock market to perform well long term, or you can get the interest rate that you deserve at your local bank, perhaps the best cash management strategy to employ is in sitting on top of your bedframe.

If this is the case, your money may not be earning interest, but it's integrity and loyalty can not be questioned for a second.

Article Source: http://www.streetarticles.com/personal-finance/the-safest-place-to-keep-your-cash ==== ==== Everything You Ever Really Need to Know About Personal Finance FREE Info at: Personal Finance on 1 Page ==== ====