One practical reason I have discovered for an emergency fund is related to choices. I recently had to make a large payment. My savings wasn't very large. And, I did not have places from which I could borrow the cash in the allotted time. So, I had to cash out some Bitcoin. No doubt this is costing me interest and capital gains. I am now a believer in the emergency fund. This way I can handle sudden cash needs without relying on credit or having to cash out investments.

It now makes sense to have savings again. Savings used to be en vogue when banks paid higher interest rates on deposits. As interest rates dropped, the math nerds convinced the world that it doesn't make sense to have cash sitting around in bank accounts. Well, with stablecoins, it is possible to have 10% or 12% interest on your savings. But, even if stablecoins did not earn interest, it would make sense to have a stash that can be deployed without harming your best investments.

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