I’ve always kept most of my savings in cash because I like liquidity, but with the dollar slowly losing value, I’m starting to worry. I don’t want to make a panic move, but sitting still feels risky too.
How have others adjusted their savings when the dollar started dropping? Are there ways to protect the value without going all-in on something risky? I’ve heard certain assets can really hold up when cash loses ground.
Dollar devaluation has me rethinking my emergency fund
byu/Ervil_Prado ininvesting
Posted by Ervil_Prado
13 Comments
Dollar devaluation was a last year story brother, the Dollar Index is up YTD.
This is why you keep your emergency fund in a moneymarket and not in cash.
> How have others adjusted their savings when the dollar started dropping?
The dollar has been slowly losing real value since before you were born, dude.
If you’re mixing up inflation, with the foreign currency index, this is a non-issue for you unless you’re spending a considerable amount of time living abroad.
Just invest everything and use an SBLOC to access extra cash when you need it.
r/Platinum r/Gold r/Silver
Huh? The dollar has been down against gold, EUR, CHF and GBP ever since the start of Operation Epic Files.
How big is this emergency fund ? 3% inflation on $100k is just 3%/yr loss if it was in cash. Invest it in short term government treasuries and it will be likely less than $3k. If your cash bucket is 5%of your portfolio, and you lose 3% of it, you’ve lost 0.15% of your portfolio value. That’s not a % I care about as a day’s market fluctuation is likely greater than that % in your portfolio.
keeping some cash for liquidity stilll makes sense, but id check how much you actuallly need for emergencies versus what can be exposed to inflation risk, just remember trying to fullly protect against devaluation usually means taking on some volatility so its a tradeoff not a free win
I converted all of my cash to Pokémon cards
Do you plan on retiring in a foreign country? If not what does dollar devaluing matter to you?
Also yes you need to own assets to combat inflation.
My emergency fund is on the risky side . It’s spread across short term treasury bill and CLO ETF‘s .
bitcoin
I see people say this but, what exactly do you need liquidity for? I pay my bills n put the rest into stocks. anything I want or need CC’s can buy me. if i actually need cash money, I can sell stocks n have my cash in 4days.. can’t forsee anything happening where id need more than the grand in my checking tho tbh.