Where so you all keep those funds?
Mine has been in a savings account for a few years. I can do better than .75%.
Emergency fund location
Joshua Martin
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Anthony Thompson
For better or worse, a savings account or money market fund is the best place. An emergency fund, by definition, needs to be highly liquid so that you can access the monies quickly if needed.
I understand the desire to seek better returns. However, it's best to avoid stocks, ETFs and similar equity assets because the volatility is too high. Bonds or bond ETFs are a possibility, but there is volatility risk there too (not as much, obviously, but enough to be wary).
Another option is certificates of deposit (CDs) which pay slightly better than savings accounts. They're not entirely liquid, however, you'd want to ladder them.
If your emergency fund is equivalent to 6 months or less of your ordinary living expenses, then stick with the savings account. The low interest rate is the simply price of security and prudent planning.
If you've got 9-24 months of living expenses saved, you could consider laddering bulk into tiers. This would increase your returns, slightly.
If you've got 12-24 months saved, you could consider putting 25-50% into a short-term bond fund. It's a bit more risk for a bit more return, but probably safe overall.
Personally, I keep 24 months in cash in a savings account. The additional hassle of seeking a few extra basis points in interest just isn't worth it to me.
Remember: An emergency fund is like an insurance policy. Yes it costs you a little in lost investment opportunity, but it can save your ass if you need it.
Colton Wright
I keep $25k in a 40%stock/60%bond mix because I'm not a pussy retard like
Colton Martin
>investing your emergency fund
>emergency fund in stocks of all things
Unless that it literally your entire investment, in which case you're even dumber.
Charles Williams
>pic related
Aiden Bell
>emergency fund
>$5 bill
Ryan Nguyen
>implying only one type of bill
>implying I'm not poor as shit
>implying this isn't all I've got
Chase Ward
I probably don't even have close to what's in there.
sales went to shit at my job and i've been looking for work for a few months now
Dominic Jackson
I keep it in a credit union account either no card access. That means I can't dip into it without the hassle of visiting the branch in person, so it's safe from good deals coming up on Amazon.
While I was working, it was great to have a regular deposit into a CU too, as they would then look favourably upon car loans etc.
I look forward to being a working man again
Charles Murphy
put it in a shoe box and buried it in my back yard so the gubmint can't find it.