I always differentiate money for saving and money for investing, why? yes it is a form of my preparation so that I don't have to sell my investment when something urgent happens in the future because I still have savings money ready for me to use.
I definitely get the point of such a diversifying, however, I think, that this is also a matter of time. If you prepare your savings in fiat for a long time, they will become victim of inflation, unfortunately. This is why, in my opinion, from time to time you have to convert this fiat savings into more reliable assets. While having some savings in fiat, especially in cash, is undoubtedly important, it is also worth remembering that this form of keeping money is not truth worthy.
Inflation is having so much effect on our funds especially the ones in the bank. People that are saving there money for a very long time now in the bank would have noticed that the value of there money before is different from the current one now or when they will get access to the money. We need to think about the future whenever we are making decisions and watch too on how we are not going to be affected by government policies that could jeopardize our interest in a long run not making us to achieve what we intend to do over a period of time.