Comments on: How Much of an Emergency Fund Do I Need? http://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#utm_source=rss&utm_medium=rss&utm_campaign=how-much-of-an-emergency-fund-do-i-need A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Feb 2012 15:18:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Singles Need Larger Emergency Fundshttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-170061 Singles Need Larger Emergency Funds Mon, 29 Aug 2011 11:31:54 +0000 http://www.nodebtplan.net/?p=1747#comment-170061 [...] out of unemployment before they can find a job. We know emergency funds are important, but exactly how much of an emergency fund do I need? Does the situation change if you are single?Emergency Fund for SinglesWhile couples or families [...] [...] out of unemployment before they can find a job. We know emergency funds are important, but exactly how much of an emergency fund do I need? Does the situation change if you are single?Emergency Fund for SinglesWhile couples or families [...]

]]> By: Saving Versus Paying Down Debt: It's All About Risk, Interest, Access, and Cash Flowhttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-139574 Saving Versus Paying Down Debt: It's All About Risk, Interest, Access, and Cash Flow Mon, 11 Apr 2011 11:30:47 +0000 http://www.nodebtplan.net/?p=1747#comment-139574 [...] usually) is a great thing to have when disaster strikes. I’ve written about emergencies and emergency funds for years because it is important to be aware of potential risks in your life. But is having that [...] [...] usually) is a great thing to have when disaster strikes. I’ve written about emergencies and emergency funds for years because it is important to be aware of potential risks in your life. But is having that [...]

]]> By: Friday Links Of The Week: 4/10/09 | Man Vs. Debthttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-27959 Friday Links Of The Week: 4/10/09 | Man Vs. Debt Fri, 07 Aug 2009 09:50:01 +0000 http://www.nodebtplan.net/?p=1747#comment-27959 [...] at NoDebtPlan started an interesting discussion about how much emergency fund is enough, which continued lively in the [...] [...] at NoDebtPlan started an interesting discussion about how much emergency fund is enough, which continued lively in the [...]

]]> By: -> An Emergency Fund Will Help Reduce Your Risk Of Financial Catastrophe | Bible Money Mattershttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-26299 -> An Emergency Fund Will Help Reduce Your Risk Of Financial Catastrophe | Bible Money Matters Wed, 22 Jul 2009 14:03:03 +0000 http://www.nodebtplan.net/?p=1747#comment-26299 [...] How Much Of An Emergency Fund Do I Need? [...] [...] How Much Of An Emergency Fund Do I Need? [...]

]]> By: Kevinhttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-19816 Kevin Sun, 03 May 2009 19:31:41 +0000 http://www.nodebtplan.net/?p=1747#comment-19816 @Obaba: That's pretty conservative, but I bet it paid off over the last year and a half. @Obaba: That’s pretty conservative, but I bet it paid off over the last year and a half.

]]> By: Obabahttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-19735 Obaba Sun, 03 May 2009 00:41:08 +0000 http://www.nodebtplan.net/?p=1747#comment-19735 I have 3 years in my money market account, which I can withdraw easily. Some are in CD ladder. Considering sometime cash can out perform any class of investment, like the last year, it is a diversification to have more in cash accounts. Of course, I have only 20% in cash, and 80% in stocks, ETFs, and funds. I have 3 years in my money market account, which I can withdraw easily. Some are in CD ladder. Considering sometime cash can out perform any class of investment, like the last year, it is a diversification to have more in cash accounts.

Of course, I have only 20% in cash, and 80% in stocks, ETFs, and funds.

]]> By: Kevinhttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-17312 Kevin Mon, 13 Apr 2009 16:54:15 +0000 http://www.nodebtplan.net/?p=1747#comment-17312 LOTS of great discussion here. Thanks for being such a great community! @Baker: Very true. I say get maybe a month or whatever you are most comfortable with (every situation is different) and then knock out that debt. @Weakonomist: Wow, that really is conservative. I wouldn't want that much saved up while paying off debt. @Fabulously Broke: Yes! Working as a free lancer is a lot more risky than a "regular" job -- you need that much saved up. @tom: You are exactly right. "Housing values only go up!" "The market only goes up!" Both were very common thoughts. Now we seem so shocked that it just isn't so... and now having to make adjustments. @Rainy Day: Somewhat true... a doctor might not need as many months expenses saved up... not so sure about teachers. In our area some teachers have been laid off due to lack of funding. @DYDR: Definitely better to start now and figure it out later. Saving money never is a true "problem". @Seeking Lemonade: But the question becomes how do you figure out how much is too little/too much without running the math? @Diane: True I didn't count in unemployment benefits. I don't think you should count on them at all! I would rather be self-sufficient in my emergency time than try to calculate how much I would get in unemployment. I'm not saying I wouldn't take unemployment -- that is what is there for -- but I wouldn't calculate it in to my equations. Would just be an added bonus. @TStrump: It depends on your personal situation... single vs. married, kids vs. no kids, really stable job vs. unstable job, etc. I wouldn't count on lines of credit necessarily -- you've got to pay them back eventually and there is no guarantee your lender won't clash your available credit right before you need to tap it. LOTS of great discussion here. Thanks for being such a great community!

@Baker: Very true. I say get maybe a month or whatever you are most comfortable with (every situation is different) and then knock out that debt.

@Weakonomist: Wow, that really is conservative. I wouldn’t want that much saved up while paying off debt.

@Fabulously Broke: Yes! Working as a free lancer is a lot more risky than a “regular” job — you need that much saved up.

@tom: You are exactly right. “Housing values only go up!” “The market only goes up!” Both were very common thoughts. Now we seem so shocked that it just isn’t so… and now having to make adjustments.

@Rainy Day: Somewhat true… a doctor might not need as many months expenses saved up… not so sure about teachers. In our area some teachers have been laid off due to lack of funding.

@DYDR: Definitely better to start now and figure it out later. Saving money never is a true “problem”.

@Seeking Lemonade: But the question becomes how do you figure out how much is too little/too much without running the math?

@Diane: True I didn’t count in unemployment benefits. I don’t think you should count on them at all! I would rather be self-sufficient in my emergency time than try to calculate how much I would get in unemployment. I’m not saying I wouldn’t take unemployment — that is what is there for — but I wouldn’t calculate it in to my equations. Would just be an added bonus.

@TStrump: It depends on your personal situation… single vs. married, kids vs. no kids, really stable job vs. unstable job, etc. I wouldn’t count on lines of credit necessarily — you’ve got to pay them back eventually and there is no guarantee your lender won’t clash your available credit right before you need to tap it.

]]> By: QuickHits: Easter Edition | Prime Time Moneyhttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-17216 QuickHits: Easter Edition | Prime Time Money Sun, 12 Apr 2009 23:09:19 +0000 http://www.nodebtplan.net/?p=1747#comment-17216 [...] How Much of an Emergency Fund Do I Need? [...] [...] How Much of an Emergency Fund Do I Need? [...]

]]> By: TStrumphttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-17096 TStrump Sun, 12 Apr 2009 01:06:30 +0000 http://www.nodebtplan.net/?p=1747#comment-17096 I used to think 6 months was enough, but the way the economy is going I have to wonder if a year is more appropriate? Anyways, I also keep a few empty lines of credit around just in case. I used to think 6 months was enough, but the way the economy is going I have to wonder if a year is more appropriate?
Anyways, I also keep a few empty lines of credit around just in case.

]]> By: Dianehttp://www.nodebtplan.net/2009/04/09/how-much-of-an-emergency-fund-do-i-need/#comment-16889 Diane Fri, 10 Apr 2009 03:23:48 +0000 http://www.nodebtplan.net/?p=1747#comment-16889 Unemployment payments are something I have not seen addressed in this calculation. If you are eligible to receive unemployment payments should you lose your job, that might be something you'd want to take into account. If I have $2000 per month in fixed expenses, and I would receive $250 per week in unemployment, that would nearly double the time my emergency fund would last, as I'd only have to use $1000 per month from savings. I currently have about 6 months of expenses in my e-fund, if I had to cover all household expenses without unemployment or any help. However, I share my house with a boyfriend who pays expenses, and I would receive unemployment if I lost my job. I could probably survive nearly a year with my current emergency fund. Unemployment payments are something I have not seen addressed in this calculation. If you are eligible to receive unemployment payments should you lose your job, that might be something you’d want to take into account.

If I have $2000 per month in fixed expenses, and I would receive $250 per week in unemployment, that would nearly double the time my emergency fund would last, as I’d only have to use $1000 per month from savings.

I currently have about 6 months of expenses in my e-fund, if I had to cover all household expenses without unemployment or any help. However, I share my house with a boyfriend who pays expenses, and I would receive unemployment if I lost my job. I could probably survive nearly a year with my current emergency fund.

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