SECURITY CENTER
COLUMNIST / BLOGS
TOOLS
PODCASTS/VIDEOS
Dave Says
Dave Ramsey is America's trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. |
Having an emergency fund is great! When unexpected things are thrown your way, you're covered. The whole point of an emergency fund is to have it right then and there. Never tie-up your money and risk not being able to get it all back. Keep Your Emergency Fund Simple Dear Dave, One of my friends suggested that I put my emergency fund money into bonds. What do you think of this idea? Renee Dear Renee, Never put your emergency fund into things where volatility and risk are a concern. An emergency fund isn’t an investment; it’s three to six months of expenses set aside to help protect you from the unexpected things life will throw at you. My advice is to keep your emergency fund in something simple—like a money market account where there’s no penalty for early withdrawal and check writing privileges for easy access. Bond values and prices go down when long-term interest rates rise. Right now, long-term interest rates—a good example would be mortgage rates—are ticking up. So, as this happens, the value of bonds goes down. We’re not looking to make money with an emergency fund, Renee. Think of it as a type of insurance. Just let it sit there, safe and sound, until it’s needed! - Dave |
Archive |
|