Comments on: Why You Need an Emergency Fund and How to Start One http://cashmoneylife.com/how-to-start-fund-emergency-fund/ Money Management, Small Business, Career Thu, 09 Feb 2012 19:08:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ryan http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20250 Ryan Mon, 02 Nov 2009 19:22:30 +0000 http://cashmoneylife.com/?p=1914#comment-20250 mewithoutdebt, That may be a good way for some people to manage it, but I think others may benefit from having a cushion to prevent using their credit cards for any unexpected expenses. There are many ways to deal with personal finances and the key is finding what works for you. mewithoutdebt, That may be a good way for some people to manage it, but I think others may benefit from having a cushion to prevent using their credit cards for any unexpected expenses. There are many ways to deal with personal finances and the key is finding what works for you.

]]> By: mewithoutdebt http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20249 mewithoutdebt Mon, 02 Nov 2009 17:33:22 +0000 http://cashmoneylife.com/?p=1914#comment-20249 Emergency fund is good idea for people who have debt payed off and are in saving mode. However, I think it is counter productive for people who are still in debt. You can read more at http://www.mewithoutdebt.com/2009/11/feeling-broke-is-good.html Emergency fund is good idea for people who have debt payed off and are in saving mode. However, I think it is counter productive for people who are still in debt. You can read more at http://www.mewithoutdebt.com/2009/11/feeling-broke-is-good.html

]]> By: Curious Cat Investing Blog http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20170 Curious Cat Investing Blog Sat, 24 Oct 2009 19:29:23 +0000 http://cashmoneylife.com/?p=1914#comment-20170 An emergency fund is a very important part of your financial plan. I think the amount is somewhat personal but also must factor in economic reality to be useful. I suggest a target of 6 months be the minimum. 4 months is better than 2 but really I would not be comfortable under 6 (and many people every year - especially now in this economy) will get into trouble even with a 6 month emergency fund. Most can't get there right away, but that should be what you are aiming for (or longer). And, with dependents, I would aim for a larger period. Also don't skip on disability insurance. An emergency fund is a very important part of your financial plan. I think the amount is somewhat personal but also must factor in economic reality to be useful. I suggest a target of 6 months be the minimum. 4 months is better than 2 but really I would not be comfortable under 6 (and many people every year – especially now in this economy) will get into trouble even with a 6 month emergency fund. Most can’t get there right away, but that should be what you are aiming for (or longer). And, with dependents, I would aim for a larger period. Also don’t skip on disability insurance.

]]> By: Financial Samurai http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20169 Financial Samurai Sat, 24 Oct 2009 17:49:24 +0000 http://cashmoneylife.com/?p=1914#comment-20169 Brad - What is $1,000 though? That's just an arbitrary #. Definitely important to actually calculate the expenses necessary for at least 12 months and create the EF fund like Hank says above. Brad – What is $1,000 though? That’s just an arbitrary #. Definitely important to actually calculate the expenses necessary for at least 12 months and create the EF fund like Hank says above.

]]> By: Brad Castro http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20168 Brad Castro Sat, 24 Oct 2009 15:12:02 +0000 http://cashmoneylife.com/?p=1914#comment-20168 Good article. For those with zero savings right now, I think the $1000 target is a more important initial objective than trying to save up several months' expenses. Once you have that initial $1000 put away, you've shown yourself that you can, in fact, save money. All you have to do is continue. And having an extra $1000 in the bank will also go a long way to giving you a sense of empowerment that will help you achieve future financial goals more easily. Good article.

For those with zero savings right now, I think the $1000 target is a more important initial objective than trying to save up several months’ expenses.

Once you have that initial $1000 put away, you’ve shown yourself that you can, in fact, save money. All you have to do is continue. And having an extra $1000 in the bank will also go a long way to giving you a sense of empowerment that will help you achieve future financial goals more easily.

]]> By: Ryan http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20167 Ryan Sat, 24 Oct 2009 14:19:49 +0000 http://cashmoneylife.com/?p=1914#comment-20167 I think a lot of people are surprised when they run the numbers. It's even more difficult to handle unexpected expenses or unemployment when you live paycheck to paycheck or if you don't know how much your normal expenses run each month. I think a lot of people are surprised when they run the numbers. It’s even more difficult to handle unexpected expenses or unemployment when you live paycheck to paycheck or if you don’t know how much your normal expenses run each month.

]]> By: Hank http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20165 Hank Sat, 24 Oct 2009 12:14:41 +0000 http://cashmoneylife.com/?p=1914#comment-20165 Great post! I was actually blown away when I finally sat down and calculated our 3-6 months of living expenses. The number was really quite larger than I had thought. My goal was originally to save $10,000 as an emergency fund, but I actually have $3,000 of living expenses including the mortgage that I absolutely have to pay. So, six months of expenses is more like $18,000 that I need. Great post! I was actually blown away when I finally sat down and calculated our 3-6 months of living expenses. The number was really quite larger than I had thought. My goal was originally to save $10,000 as an emergency fund, but I actually have $3,000 of living expenses including the mortgage that I absolutely have to pay. So, six months of expenses is more like $18,000 that I need.

]]> By: Financial Samurai http://cashmoneylife.com/how-to-start-fund-emergency-fund/#comment-20164 Financial Samurai Sat, 24 Oct 2009 03:18:18 +0000 http://cashmoneylife.com/?p=1914#comment-20164 Sometimes, everyday is treated as an emergency, that's why it becomes so hard to save. If more people would follow my "going broke to win big" methodology, I think more folks would have more money saved. Go out there and flush as much money as you possible can out of your "go broke" bank, and into your investment bank and debt bank. Optimize your cash flow! FS Sometimes, everyday is treated as an emergency, that’s why it becomes so hard to save. If more people would follow my “going broke to win big” methodology, I think more folks would have more money saved.

Go out there and flush as much money as you possible can out of your “go broke” bank, and into your investment bank and debt bank. Optimize your cash flow!

FS

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