Comment on Is it worth investing if I can only contribute $50 a month?

• ComradeMiao@lemmy.dbzer0.com ⁨14⁩ ⁨hours⁩ ago

  HYSA is liquid. Index is one step away from liquid

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• ComradeMiao@lemmy.dbzer0.com ⁨14⁩ ⁨hours⁩ ago

  Not at minimum keeping it in a HYSA is losing 5% per year

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  • SpermHowitzer@sh.itjust.works ⁨12⁩ ⁨hours⁩ 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.

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