Emergency Fund or Investments? How to Balance Both Like a Pro

Introduction

Should you park cash for emergencies or invest it? The answer isn’t either/or—it’s both. Here’s how to strike the perfect balance.

Step 1: Calculate Your Emergency Cushion

Rule of thumb: 3–6 months of expenses.

Tip: Use Negowealth’s “Safety Net” savings plan (if available) for 3% APY.

Step 2: Invest the Rest Wisely

Options for short-term liquidity (money market funds) vs. long-term growth (ETFs).

How Negowealth’s goal-based accounts let you compartmentalize.

Real-Life Scenario

"Amina, a Kenyan entrepreneur, keeps 4 months’ expenses in Negowealth’s high-yield savings while investing the rest in a diversified portfolio