Re:Every thought about personal finance I've ever had, as co...
by ryandrake on Saturday February 27, 2021 @01:10PM
(#26286763)
I like to think of different tranches of emergency too, and keep different emergency funds in different vehicles for each type of emergency. General cooling off of the market? Hold Series I bonds or some security that's pretty much as good as cash but has a small amount of growth. Sudden unemployment? Cash in a money market account. Natural disaster like an earthquake that may limit your access to financial institutions? Cash stuffed in the mattress. The zombie apocalypse? Ammunition and bottled water.
Have a little bit of your emergency fund in each of these.
Itβs about balancing risk management and wealth. That balance is going to be different for everyone, but you always need to be a little cautious.