I had a discussion with a member of my Telegram group about something Dan Egan, VP of Behavioral Finance & Investing at Betterment, shared in the past. Dan’s post was the basis of my advanced personal cash flow management post yesterday.
Dan shared that his emergency money is entirely fungible in that the money can be used for different types of emergencies. And he invests the emergency funds, which grow over time if the emergency never comes up.
Dan took this route due to his money philosophy.
He dislikes inflation, so he would rather hedge his long-term purchasing power than risk deflation in the short term.
I think you will fall into either the camp of “emergency funds should only be put in very safe cash-like securities” or the camp of “how should I invest my emergency funds?”.
I used to wack my friend Mr 15 Hour Work Week for his funky emergency fund strategy because I think we should not...