Wasn't sure whether to post it here or A&L. Is it good? Is saving 10% of all you earn enough for the contingencies of the modern age?
Another option for emergency funds is I Bonds. They earn interest for 30 years that is adjusted for inflation (more accurately, the CPI, it's debatable how much that reflects actual inflation), so if you're concerned about losing out to inflation, this could be an option. Right now newly-purchased I Bonds pay 1.68% which is better than even long-term CDs. Downsides: you can't cash them out within the first year after purchase, you will lose three months interest if you cash them out before five years, there is a purchase limit ($10k per year per SSN but there are ways to get up to $15k more), and you have to deal with TreasuryDirect which looks like it hasn't been updated since 2002.Haven't read the book. IMO have 2 months of normal expenses in liquid form (can withdraw instantly, e.g., your bank's low-yield savings account) for emergency use, and another 4 months in a stable low-risk investment (I personally do govt paper, lots of people swear by money market accounts but I don't have one) which you can draw from given maybe a week. Save as much as you comfortably can until you have those two reserves. After that I guess what you put into investments is dependent on what your retirement goals are.