I keep my emergency fund (currently 5k) in a savings account in an online savings bank where it earns roughly 1% interest. My coworker was telling me this is a bad idea and thinks that I’m “destroying my wealth” because inflation is running at 8%+. Everything I’ve read about emergency savings is that it should be relatively liquid. He argued that an index fund or REITs would be a better option since I could earn 5-7% interest. However, my concern is that I could lose money, which is exactly what I’m trying to avoid. What do you recommend for an emergency fund vehicle and am I destroying my capital as he says?
Submitted June 13, 2022 at 11:38PM by rainrunner94 https://ift.tt/4gf1jK5
