Why Do You Recommend an Opportunity Fund Over an Emergency Fund?

Chip-Stapleton-13-Why do you recommend an opportunity fund over an emergency fund

Chip Stapleton says that while emergency funds are important, he prefers the idea of “opportunity funds” — savings that not only cover unexpected expenses but also allow you to take advantage of major life opportunities, emphasizing the need to keep your money accessible and liquid.
Video Transcript

Emergency funds are great. I like opportunity funds because emergencies aren't the only thing that costs money. Yes, emergencies cost money. You need new tires.

You need to pay that bill because you just got in a car crash. You have that deductible. You have the health bills, all that doctor's bills, all that stuff. But there's also opportunities.

You have that opportunity to buy that vacation property, but it requires a twenty percent down payment.

Usually three months of expenses is not going to cover a twenty percent down payment on a house.

You need money for your daughter's wedding, your kid's wedding.

That costs a substantial amount of money.

So the idea of an emergency fund to me is inadequate. So it's about where you save. You need to save places that are liquid.