I have saved six months’ worth of expenses in an emergency fund, but inflation is eroding its value. Should I invest part of my emergency fund in something higher-yielding, like bonds or a high-yield savings account?

Emergency money needs to stay liquid; these are funds you almost have to ignore because they are for an emergency. I understand that it is hard in today’s environment to see what inflation has done to our savings. There are a number of money market accounts that will pay more than savings accounts, which might be an option. My rule is, any money you might potentially need in 18 months or less, needs to stay liquid, regardless of the yield.

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