Comment on Is it worth investing if I can only contribute $50 a month?
ComradeMiao@lemmy.dbzer0.com 4 weeks agoEmergency fund money should be in a HYSA at least if not index funds.
Comment on Is it worth investing if I can only contribute $50 a month?
ComradeMiao@lemmy.dbzer0.com 4 weeks agoEmergency fund money should be in a HYSA at least if not index funds.
foggy@lemmy.world 4 weeks ago
Terrible advice.
Emergency money literally must be liquid or it is not, by definition, emergency money.
ComradeMiao@lemmy.dbzer0.com 4 weeks ago
HYSA is liquid. Index is one step away from liquid
ComradeMiao@lemmy.dbzer0.com 4 weeks ago
Not at minimum keeping it in a HYSA is losing 5% per year
SpermHowitzer@sh.itjust.works 4 weeks ago
The issue with keeping your emergency fund in an index fund is that the odds of your own personal crisis coinciding with a more widespread crisis is high. I got furloughed in April 2020. Had my emergency fund been in index funds, I would have had to realize all those market losses in order to use my emergency fund, which would have meant my emergency fund would have been a fraction of what it actually was since it was in a savings account.