Emergency Fund? - Online Consumer Forums Digital-Boards.com The Consumer Network

Mom2one · 05-08-2007

Do you keep an emergency fund for rainy days? If not, do you plan to? How would you cope with being laid off?

I read a plan recently that you should get $1000 in the bank as emergency, then pay off all your debts. Next you work on saving 3-6 months worth of mortgage and utilities, before finally reaching the point of being able to invest.

It seemed a little extreme to me.

Lloyd Brown · 05-09-2007

I remember those days. I can only hope that I never get to that point again.

My home is my investment, with a couple stocks and high interest bank accounts, but I can't say that those are going to cause early retirement for me.

I just keep working, and making more than I am likely to spend. I really enjoy what I do, so retirement isn't really an issue for me.

lalajean · 05-09-2007

You know they say that, but it is much easier said than done. yes it is ideal, but in order to do this you need to have a budget and stick to that budget not spending in areas that are unnecessary are another way of helping to make it happen.

I personally started with having money for at least 3 months of rent, and utilities. Now all of my utilities are ahead so in the event something happens they are already paid. Investing in your own home can be a helpful way as well, if you choose to pay it off in less than the 30 years.

personalmedia · 05-24-2007

I don't have an emergency fund at this time but this thread has really gotten me thinking about what a good idea it would be. I have a little cushion right now but I seem to keep dipping into it.

SingleAgain · 05-24-2007

Dipping into it is always a temptation and really requires that you either develop self discipline or else you need to put the money where you cannot get at it. Can you put it in CDs instead, so that it can't be spent for that time? That might help, because you can just put it straight into a new CD when the time comes.

The drawback there is that if you really need it, it is tied up.

Lloyd Brown · 05-25-2007

Quote:

Originally Posted by SingleAgain

Dipping into it is always a temptation and really requires that you either develop self discipline or else you need to put the money where you cannot get at it. Can you put it in CDs instead, so that it can't be spent for that time? That might help, because you can just put it straight into a new CD when the time comes.

The drawback there is that if you really need it, it is tied up.

There are CD's available that you only have to keep there for 30 days, then you can grab if you need.

Mom2one · 05-25-2007

And I have seen others that let you add to the CD as the year goes on. So it seems like there might be the flexibility you need in CDs, if you put some in longer term savings and some in a short term one like this.

05-08-2007	#1 (permalink)
Mom2one Consumer Join Date: May 2007 Posts: 99	Emergency Fund? Do you keep an emergency fund for rainy days? If not, do you plan to? How would you cope with being laid off? I read a plan recently that you should get $1000 in the bank as emergency, then pay off all your debts. Next you work on saving 3-6 months worth of mortgage and utilities, before finally reaching the point of being able to invest. It seemed a little extreme to me.

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05-09-2007	#2 (permalink)
Lloyd Brown Administrator Join Date: Sep 2006 Posts: 518	I remember those days. I can only hope that I never get to that point again. My home is my investment, with a couple stocks and high interest bank accounts, but I can't say that those are going to cause early retirement for me. I just keep working, and making more than I am likely to spend. I really enjoy what I do, so retirement isn't really an issue for me.

05-09-2007	#3 (permalink)
lalajean Consumer Join Date: May 2007 Posts: 34	You know they say that, but it is much easier said than done. yes it is ideal, but in order to do this you need to have a budget and stick to that budget not spending in areas that are unnecessary are another way of helping to make it happen. I personally started with having money for at least 3 months of rent, and utilities. Now all of my utilities are ahead so in the event something happens they are already paid. Investing in your own home can be a helpful way as well, if you choose to pay it off in less than the 30 years.

05-24-2007	#4 (permalink)
personalmedia Consumer Join Date: May 2007 Posts: 71	I don't have an emergency fund at this time but this thread has really gotten me thinking about what a good idea it would be. I have a little cushion right now but I seem to keep dipping into it.

05-24-2007	#5 (permalink)
SingleAgain Consumer Join Date: May 2007 Posts: 98	Dipping into it is always a temptation and really requires that you either develop self discipline or else you need to put the money where you cannot get at it. Can you put it in CDs instead, so that it can't be spent for that time? That might help, because you can just put it straight into a new CD when the time comes. The drawback there is that if you really need it, it is tied up.

05-25-2007	#7 (permalink)
Mom2one Consumer Join Date: May 2007 Posts: 99	And I have seen others that let you add to the CD as the year goes on. So it seems like there might be the flexibility you need in CDs, if you put some in longer term savings and some in a short term one like this.