The state of Florida is in a mess that illustrates something important about how each of us handles cash. Many of Florida's counties and school systems aren't able to meet payroll or pay bills. Some of their checks are even bouncing because the state got cute with funds from its local government investment pool. Municipalities were encouraged to put their money from taxes, fees and fines into this pool where they could earn interest until they needed the money. It was kind of like a money market fund for government. But the state tried to goose the returns by investing in risky weirdo mortgage things like CDOs and SIVs. When the local governments caught word of this unsound investment strategy, there was a run on the bank that prompted the state to freeze all investment pool funds. Now the municipalities don't know how they're going to pay their bills.

If your goal is to have cash for cash flow's sake, you can't have it flowing away. Sometimes you need a parking space like a savings account, a CD or a true money market fund. If even those options seem too risky, try a high-yield savings account from EmigrantDirect.com, INGDirect.com or HSBCDirect.com. You'd be surprised how well they pay. BankRate.com reports that the average savings account at a giant monster mega bank pays .4 percent. Emigrant, ING and HSBC pay more than 10 times that amount, plus they have no fees and no minimums! So go back to basics when you're analyzing your non-long term investment needs. Sometimes you want safe, not sexy. Just park it and get decent money!