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Paula Pant

What's a Cash Cushion?

By November 5, 2012

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If you've been reading the Budgeting site here at About.com for awhile, you've probably seen me roll out article after article about the importance of building an emergency fund. This is a last-resort fund that you tap in dire situations, such as if you lose your job.

But you should also maintain a cash cushion in your checking account to protect you from bouncing checks or paying overdraft fees. In this latest article, I explain the concept of a cash cushion, I describe why it's important -- and I tell you why, I'm sorry to say, it isn't considered part of your emergency fund.

Comments
March 7, 2014 at 3:41 am
(1) free checking account says:

This is a topic that is close to my heart… Best wishes!

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