Cash Reserves

Having cash on reserve means you have actual cash (that green stuff no one carries around anymore), or another easily accessible, liquid investment on hand for your dire emergencies.

And having an emergency cash reserve fund isn’t really a bad idea, especially when the landlady has decided to change the locks on your doors because you haven’t paid rent in 3 months.

But corporations can also have cash reserves for their immediate purchasing needs, and are typically invested in short-term, low interest bearing, highly liquid investments like Treasury Bills.

Take Apple, for example. This innovative, mega-technology giant boasts a modest cash reserves balance of about $150 billion smackeroonies. Must be nice.