I see that many of you actually liked the concept of 20 % method wherein you allot 20% of your earnings to be saved as emergency fund.
So I was thinking, if that 20% allotted will be invested in a time deposit kind of account, will it still be possible to earn as much or invest it in cryptocurrency? Or maybe just let the money sleep until such time you will need it?
What will be a wise kove to do with the noney you have saved up?
Emergency funds are not to be deposited in a time deposit account. Time deposit accounts have specific time before you can withdraw it and you can never tell when you are in need of it. Also it is not wise to invest emergency funds because you are doing away with the main purpose of such savings.
For what kind of emergency are you locking in these funds. If you are locking it in for emergencies such as some health problems or something like that then saving it into a fixed term deposit will be a great havoc as you will have to comply with certain formalities before encashing that income for use. But if you are using this money merely as your buffer money which you could use in times of your economic anarchy then yes probably it will be great to put it into a fixed deposit as it will also generate a passive income over time.