I am a big proponent of holding cash in an emergency fund. In this current moment of very low interest rates, clients are asking why they should be holding on to cash which is essentially losing value in an inflationary environment. I would like to reference this article on sleeping well and holding cash. It’s not always about the finances but it’s about having the money available when you need it for emergencies that come up. Some people like to have a line of credit they can access instantly but in my opinion keeping 6 to 12 months of cash on hand is a wonderful way to sleep at night even if you might not be getting the best return.