Should Emergency Funds Be Invested?

[Suba]

After we have tried to collect emergency funds and have reached targets such as a single person 6 times monthly expenses, while for those who are married and have one child around 12 times monthly expenses. If we, keep continue to collect emergency funds, then the emergency funds will exceed the target we need. So in your opinion, should emergency funds remain in a savings account or should we invest them especially in instruments that are easy to liquidate?

 

[Augusta]

I think it should be invested but especially in instruments that are easy to liquidate in case of any financial emergency

 

[Stardom22]

I do think that the emergency fund that hadn't been utilised should be invested for that reason. With that way it brings in some profits for that matter.

 

[Springtime]

I prefer to keep my emergency fund in a fixed deposit account. Investment involves risks. Since the fund is for emergency use, I do not want to lose any amount of money.

 

[eLdavis]

At the end of the it all depends on the individual. An emergency might come up at any time, even if you decide to invest it, still have something on ground in case an emergency comes up.

 

[Suba]

I prefer to keep my emergency fund in a fixed deposit account. Investment involves risks. Since the fund is for emergency use, I do not want to lose any amount of money.

Fixed deposit accounts have a certain period of time to be disbursed to cash so we will have difficulty if we really need emergency funds, because we have to wait for the deposit to mature, gold investment is a safe investment and the price always goes up and is easy to liquidate, you can also invest in digital or physical gold.

 

[Starmix]

For me, I will not bother myself about the emergency fund. It is intended for that purpose so it should not be invested. You can't withdraw your invested money whenever an emergency arises. You will be trapped unless you have a huge savings.

 

[Suba]

For me, I will not bother myself about the emergency fund. It is intended for that purpose so it should not be invested. You can't withdraw your invested money whenever an emergency arises. You will be trapped unless you have a huge savings.

That is what is recommended by financial experts, emergency funds are not invested, because emergency funds only amount to several times the expenditure so the amount of money is also not large, if the emergency fund has exceeded the target, and someone wants to invest in instruments that are easy to liquidate, then it is better to only invest part of the emergency fund.

 

[Starmix]

That is what is recommended by financial experts, emergency funds are not invested, because emergency funds only amount to several times the expenditure so the amount of money is also not large, if the emergency fund has exceeded the target, and someone wants to invest in instruments that are easy to liquidate, then it is better to only invest part of the emergency fund.

If only part of the emergency fund to invest them I will be for it.
At least it yields interest rather than stay idle. But if the emergency fund is not qualified to be invested because it's not sufficient then it's better not to bother it. It also depends on the person himself.

 

[Fidelia]

I would invest the emergency funds in highly liquid assets. It would yield interest that way and still serve as emergency funds when liquidated.

 

[Springtime]

Fixed deposit accounts have a certain period of time to be disbursed to cash so we will have difficulty if we really need emergency funds, because we have to wait for the deposit to mature, gold investment is a safe investment and the price always goes up and is easy to liquidate, you can also invest in digital or physical gold.

I agree that investment in gold is a good choice. Here, money in fixed deposit account can still be withdrawn but you cannot get the interest.

 

[Min George]

When once you have reached your ideal emergency amount, hold the money in investments still as emergency funds. It would give you interest to improve your financial level.