Sunday, March 13, 2011

The “1” Question you need to ask and consider before you put your money anywhere?

Many people find out the hard way, once it is too late. That once seemingly great place to put their money has now handcuffed them or not available when they need it the most. Even if they thought they would never need that money sometimes life happens. Some of these events include but not limited to:

• Unemployment
• Disability
• Divorce
• Treatment for Medical Illness
• Education Expenses
• Wedding
• House Down Payment
• Business opportunity

The “1” question most people never ask:

How do I access my money and how quickly can I get it in an emergency?

Due to not asking this very question many people are forced to put items and expenses on high interest credit cards or pay unnecessary taxes and penalties at the very moment they can least afford it.

Some factors to consider and ask when placing your money in an account:

• How quickly can I get my money? (Ideally you would want less than a week)

• If I ask for my money, will I get it automatically or will I have to go through an approval process and qualify to get access to my own funds?

• Will I owe a penalty and taxes when gaining access to my savings?

• Will all my money be there when I need it the most or will it be subject to the ups and downs of the stock market?

• Can I use my money for anything I see fit or am I forced to use it only on certain expenses?

Throughout the years I have heard some terrible stories about folks struggling financially. Many times they are struggling financially not because they are not responsible people. They always had good intentions, however due to where they chose to put those savings has caused them many unintended consequences they never thought possible. That is why I think you should always ask this “1” question before putting your money in any account:

How do I access my money and how quickly can I get it in an emergency?

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