Why Cash Reserves Matter in Financial Planning

Jen thought it was just another Tuesday — until she lost her job. No warning, no fault — just downsizing. But instead of panic, she felt calm. Why? She had a cash reserve.¹

Life throws surprises: layoffs, medical bills, broken appliances. A cash reserve turns those moments from crisis into inconvenience. It protects your investments, brings peace of mind, and gives you flexibility when opportunity knocks. It’s not just a buffer — it’s the foundation of your entire financial plan.

When you work with Mettle Financial Group, we help make sure you have cash reserves so when life happens, you can play offense, not defense. Here are a couple examples of how cash reserves are helpful:

1. Emergency Preparedness

Life is unpredictable — job loss, medical expenses, car repairs, home maintenance — all of these can happen unexpectedly. A cash reserve is your financial cushion. It helps you handle life’s surprises without going into debt or derailing your long-term goals.

2. Avoid Liquidating Long-Term Investments

Without a reserve, you may be forced to sell investments during market downturns — locking in losses and triggering taxes. Having cash on hand means you don’t have to touch your investments at the wrong time. It helps protects your long-term strategy from short-term needs.

3. Supports Mental & Financial Peace

Knowing you have 3–6 months of expenses saved reduces stress and helps you feel more confident in financial decisions. Working with an Ameriprise financial advisor can give you greater peace of mind knowing you have a plan in place for your financial future.

You will likely make better long-term decisions when you’re not worried about next month’s bills.

4. Enables Opportunity

Cash reserves aren’t just for emergencies — they also give you the ability to act quickly on opportunities like investing, career changes, or buying real estate. A reserve can give you breathing room — and flexibility to say yes when opportunity knocks.

5. Foundation of the Financial Plan

Before building wealth, you need a solid foundation. Cash reserves can safeguard the rest of the plan. We don’t build a house without a foundation — your cash reserve is the base that holds the rest of your plan together.