This is the Ramsey Call of the Day, part of the Ramsey Network.

Joining me today is Ramsey personality, Ken Coleman.

Ernest is in Kansas City. Hi, Ernest. How are you?

Doing pretty good, Dave. How are you?

Better than I deserve. How can we help?

Hi. I was just wondering what can I do to protect the money we've saved from inflation?

Saved. Where is it saved?

We're just in savings accounts basically right now.

How much is in there?

Investment.

10,000 in the house fund, about 20,000 in the emergency fund.

Okay.

The emergency fund, you don't protect from inflation. That's not what it's for.

It's there just for insurance, so when life happens.

Transmission goes out, somebody gets sick, somebody gets laid off. That's what it's for.

It's not an investment. Investments have to be protected from inflation by investing at a rate of return that is higher than the

inflation rate and that's what you have to do you have to make the inflation rate is average in the

last 72 years 4.2 percent taxes add about another 2 percent to that so you got to make over 6

percent on your money on a long-term investment

to break even with taxes and inflation. And that's always been the case. These increases in

prices have kind of recently in cars and houses and building supplies and other stuff

has woke people up again on the dangers of inflation.

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