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How Inflation Is Quietly Eating Your Emergency Fund
Lucas and Luna explore a hidden inflation threat: your emergency fund. With CPI at 334 and the Fed funds rate stuck at 3.63%, cash savings are losing purchasing power by about 2% per year after inflation. Lucas reveals that the median American emergency fund of $5,000 has lost roughly $400 in real value since 2023, even as nominal balances grow. They discuss whether high-yield savings accounts (now yielding 3.5-4%) can offset the damage, and debate if short-term TIPS or I bonds make sense for the 'don't touch' portion of savings. The hosts crunch real numbers: a $10,000…
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