Are Emergency Funds a Bad Idea?
I came across an article today that I had to comment on. It was about Emergency Funds. The Title was Emergency Funds Are a Bad Idea. Here are some excerpts.
Bottom Line – Emergency funds help keep you out of debt because the credit card is where we go when we can’t pay with real money. They are not designed to increase your net worth. They pay nothing because risk free earns nothing these days. Emergency funds are designed to be risk free because you don’t take risk on something that needs to remain liquid. Finally, emergencies will happen unless you are immune to change.