Quote from: Emjay24 on September 02, 2025, 07:56:05 PM

Quote from: Loyang on September 01, 2025, 06:10:52 PM

Quote from: paxmao on September 01, 2025, 10:28:33 AM

Still you may decide not to hold cash, but rather near cash equivalents that at least give you some yield, like short term debt, easier in the form of a mutual fund.

I think it's a good idea to keep cash in an emergency fund.

Not necessarily bro, it's very fine to keep it in a financial system that doesn't experience much volatility, it would've been best in Bitcoin but the volatility is a great problem now.

For people with currencies that crashes against the dollar, they can keep them in stable coins like USDT to reduce the impact of inflation on it or you can even place it in the save option in a microfinance Bank app so it's there getting you little profits while you can break it anytime emergency comes.

Emjay24, I would not agree with you fully, I get where you are coming from though, but honestly I still believe nothing beats having your emergency fund in cash/fiat in easily accessible banks.. Bcus the way you sounded, I doubt you’ve understood the whole essence of emergency funds.. The whole essence of an emergency fund is simply accessibility without stress, because emergencies do not send notice.. If something happens today and you need to act fast, you don’t want to be thinking about converting USDT, network delays, or whether your microfinance bank of app is suddenly down.. Even the little profits you claim you want to make from keeping it in mincrofinance or stablecoins does not matter in that moment, what matters is how quickly you can reach it without complications.. Cash might not beat inflation, but I would say in emergencies, speed and certainty is more valuable than interest…

Another thing is, we need to remember that an emergency fund is not an investment. Mixing both would create confusion. Bitcoin, stablecoins, or micro finance are all great for long term plays, but they are not the right bucket for money you might need tomorrow morning if something goes wrong.. Inflation eats cash slowly, yes, but life threatening issues or sudden expenses can drain you instantly if you do not have immediate pull out plan.. That is why for me, I would rather take the boring route of holding my emergency fund in cash/fiat, and keep my investments and savings in other systems separately. It keeps my head clear and my options open when pressure comes...