A cash cushion is essential for handling unexpected expenses and market downturns. To build one, prioritize savings in your budget and automate transfers to make it consistent. Aim for 12 to 24 months of essential expenses in your cushion. Keep this cash in liquid, interest-earning accounts like high-yield savings or money market accounts. While not necessary for retirement survival, a cash cushion can reduce financial stress. Explore “Social Security secrets” to boost retirement income by up to $23,760 annually. Consider joining Stock Advisor for more insights on maximizing Social Security benefits.

Read more at Nasdaq: 5 Ways to Build a Cash Cushion for Retirement