Optimal Finance Daily · Saturday, September 19, 2026
Craig Stevens is proposing a new savings strategy to better manage unexpected expenses, advocating for a distinct emergency fund segment separate from his vacation and car funds. This dedicated emergency fund would be built up to cover three to six months of expenses, freeing up his general savings fund for investments.
“What I think needs to happen, and this is just becoming apparent as I write this, is I need to create a separate segmentation for emergency savings. Then load that up to a certain level, three to six months of expenses or more, and use the general savings fund almost exclusively for investing.”
“The dilemma I face is that my overall cash holdings will be much larger than today. Usually, I want to use most of that to build income streams. But I guess I'm becoming more risk-averse in my 40s.”