It is not where you put money you want to use to take a vacation, go shopping, purchase a house, or any other expense that falls into the ‘want’ category,” says Lauren Bringle Jackson, an accredited financial counselor and content marketing manager at Self, a financial technology company based in Austin, Texas, that aims to help people build credit.
First and foremost, before putting together an emergency fund, you should always prioritize designating any additional savings you have towards paying down debt — most specifically high-interest credit card debt,” says Adem Selita, CEO at The Debt Relief Company, a financial services company based in New York City that specializes in debt relief programs.
We’ll cover high-yield savings accounts, money market accounts, and investment accounts below.
While putting your emergency fund in a checking or savings account at a bank is a safe move, the low returns would allow inflation to eat away at your money over time, says Taylor Matthews, founder of Farther, a financial planning and investment management company based in New York City.
