I’m a believer in having access to liquid capital to cover 3-6 months of expenses.
First, money fights are one of the top reasons marriages break up. Having an Emergency fund is an incredibly important part of reducing stress in marriage, This is a fact I rarely see mentioned in any emergency fund discussions.
I know many of you will disagree or say having cash on hand is a stupid decision. But most people who say this are only looking at the math. I get that from a math perspective, it may be better to invest that $ and use a LOC to cover emergencies, but personal finance is mostly psychological imo. And I believe the recent work in behavioral economics ) and psychology bear this out.
With that said, where do you park the money for your emergency fund to earn the maximum interest while protecting your capital and maintaining liquidity?
Right now I just have it in an RBC high interest savings account, but the interest rate is 0.9% (high interest, ya right!!)
Interested to hear people’s thoughts!
Submitted May 18, 2018 at 01:50AM by HustlingDad https://ift.tt/2GrBYqY
