As a person living paycheck to paycheck and having some investment, it's always better to keep some funds in the emergency fund. There are a lot of instances where people struggle with unforeseen circumstances and they require urgent money. And when you don't have proper financial planning you end up taking loans in these unforeseen conditions, but an emergency fund will surely come to rescue in these situations.
It's not about how much you keep in the emergency fund but it's always better to keep at least 3 months of your expenses as an emergency fund. Like if you lose your job today you will have 3 months' time to find a new one without thinking about the finances. Now, this emergency fund should be kept somewhere safe like a bank fixed deposit and other places. But if we look at the interest rates, the maximum we get is around 6%.
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Now if we take inflation into account the interest rates are close to none or even negative. Whereas if we check the same interest rate on a stable coin i.e. HBD we are getting 20% which is more than 3 times the maximum interest rate of a normal bank. This actually solves two problems, one keeping your emergency fund safe for any unforeseen circumstances as well as growing that emergency fund along with inflation and thus which helps you to beat the inflation big time.
So if you put 3 month of your emergency fund in HBD savings, after one year the expenses might have increased to 7-10% because of inflation and at the same time, your money has grown by 20% i.e. 10% income you are getting. If I come up with my emergency fund it is around 2000$ and thus my aim is to keep at least that much HBD in the HBD savings so that I have that much fund in hand whenever I need it.
And that emergency fund, I will not be touching until I actually need it for unforeseen circumstances. Everyone of us should take advantage of keeping HBD in savings as an emergency fund so that whenever we need it we can withdraw it in 3 days, and counter the situation with strong hands.