Commodity Emergency Fund
Until now, I've held my emergency fund in a "high-yield" online savings account at ING Direct. This emergency fund is mainly to shield myself from a layoff, deal with a car breakdown, or something else major. It will not be spent. Due to the low interest rates, I only get 1.50% APY. I plan on increasing the size of it because it's not big enough for these economic times, but it pisses me off to get such a low yield.
Enter the commodity emergency fund. I plan on leaving about $3,000 in cash and moving the rest into an ETF tracking the GSCI commodity index. Yes, that means my "emergency fund" can go down unlike a savings account, but at least it won't be getting a pathetic 1.50% yield. The possible loss of some money won't be too big a factor, since commodity prices will generally go up with a weakening dollar and inflation. I do also plan on adding a lot of money to my new fund, since I'm much more willing to buy a basket of commodities than add to a 1.5% emergency fund that will most likely not be used.
Pointless post to anyone who reads this, but I'm quite proud of myself for realizing I could do this. I guess I've read too many personal finance sites, where they only invest with index funds and keep their emergency funds in online savings accounts. I'd be fine with an online savings account in other times, but not with this massive soon-to-come inflation and (some) bargains in the stock market to be had.