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.
Yes, except may be by emergency, he probably just mixed it all up and was referring to long term savings instead. In the context of emergency funds you are absolutely right which I believe since that is what the OP referred to, saving such fund should make you have access to it anytime you want.
Moreover for long term savings, based on whether his plan is to invest it or not, there is always the need to at least minimize the risk. I certainly may just remove a certain percentage of it into crypto but putting all into crypto at once instead of the bank, is a huge risk to take.