Case For Cash: Lessons Learned During The Pandemic
Three Areas Where Maintaining Cash Reserves Offers Security And Opportunity
After a tough period of health concerns, furloughs, and economic strain, it feels good to breathe a sigh of relief as we begin seeing optimistic signs of emerging from a pandemic-dominated life. With this relief comes a prime opportunity to identify the lessons learned during the pandemic about the importance of acquiring cash reserves, so we can better prepare for future volatility.
A known issue even before the pandemic, it became glaringly clear that many Americans lacked the safety net of cash reserves and struggled financially to withstand the unexpected downturn. COVID-19 served as a major wake-up call on why it’s critical to have access to liquidity, not just for those struggling to cover expenses, but also for individuals with the means to move quickly on investment opportunities.
The pandemic revealed three areas where maintaining healthy cash reserves offers security and opportunity during downturns. Building cash reserves may not be glamorous, but the pandemic has revealed it’s an integral part of a comprehensive approach to overall wealth management. Liquidity creates the ultimate flexibility for households and business owners. It allows for peace of mind in times when life feels out of control.
To read about the important lessons learned during the pandemic about the importance of cash reserves, click here to access Puget Sound Business Journal’s full article authored by Seattle Bank’s VP, Private Banking Outreach Bodil Stevns.