Picture it: you have 3 to 6 months of expenses saved for emergencies.
It's your emergency fund. You'll only ever access it if there's an emergency, right?
Wisdom dictates that your emergency funds stay liquid and safe, right?
But we'd really like to also protect it against inflation and get some sort of growth from it too, right?
So the question is, now that you've got 3 to 6 months of expenses saved in an emergency fund, where do you keep it? ‘Cause money has to live somewhere, right?
The chart below shows two options. Option Blue and Option Orange. Their growth trajectories, if never interrupted by an emergency, are shown over a 30 year span.
They are both safe and both guaranteed to grow.
Which curve do you want?
