Just realized I was handling my emergency fund all wrong
For years, I kept my emergency cash in my regular checking account, figuring it was fine as long as I didn't touch it. I had about $5,000 just sitting there, not even in a savings account. A friend in Phoenix asked me last month what interest rate I was getting on it, and I had to admit it was basically zero. He showed me his high-yield savings account statement where his emergency fund was earning over 4%. I moved my money the next day into an account at Ally Bank. Now it's separate, harder to dip into for non-emergencies, and actually growing a little each month. It seems so obvious now, but I never really thought about my cash losing value to inflation. Has anyone else made a similar switch and noticed it changed their spending habits too?