Maintain a steady cash flow from your savings or checking accounts to cover essential expenses like mortgages, debts, utilities, and groceries 

Create an emergency fund separate from your regular accounts, containing up to six months' worth of living expenses, to handle unforeseen events without depleting long-term investments or incurring penalties 

When saving for a short-term objective like a wedding or vacation, consider using a short-term savings or investment vehicle that offers higher interest rates than traditional accounts 

While stocks and stock-based mutual funds are suitable for long-term goals, for shorter time frames, allocate funds to stable and growth-oriented assets that ensure the availability of a specific amount when needed 

Include cash as a separate asset class in your investment strategy to mitigate market volatility and maintain a stable portion of your portfolio 

Having cash readily available allows you to capitalize quickly on promising investment prospects