Tagged Questions

to be used for any question related to emergency, "rainy day", or reserve funds for an individual or family. The question can be related to calculating, creating, managing or understanding the need for emergency funds.

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18
votes
4answers
3k views

Should my rainy day fund be fixed or should I increase it by a little every month?

I've just started working and I'm building up several of my investments (mortgage preparation fund, general savings fund, rainy day fund, wedding fund). As for the mortgage, wedding fund, and general ...
5
votes
2answers
264 views

How much cash on hand should one have?

The basic question is how much of my 'money' should I have on hand (ready to spend immediately) as opposed to putting it all in a high-yield (or at least inflation-fighting) investment? For instance, ...
17
votes
4answers
3k views

Are precious metals/collectibles a viable emergency fund?

My significant other received a gift from a family member in the form of silverware. The exact value is not known but it is likely enough to cover 6+ months worth of expenses if it were sold. It is ...
1
vote
3answers
146 views

Emergency Fund vs. Student Loan Payment

I've been reading a lot about the importance of a ~6 month emergency fund AND the importance of paying off student loans as soon as possible. I have ~$14k (6% interest currently in grace period) in ...
2
votes
3answers
226 views

Where should I park my rainy-day / emergency fund?[INDIA]

I was looking at options for where I can put my emergency fund. I came across these questions during my search - #1 and #2 - which are specifically for U.S. and Canada. I want to know what options ...
18
votes
7answers
3k views

How risky is it to keep my emergency fund in stocks?

Everybody says you should keep an emergency fund of 3–6 months of expenses in cash or near-cash (CDs, treasuries, etc.). I know this is heresy but if you have funds for significantly more than 6 ...
5
votes
3answers
239 views

Should I prioritize paying down my higher interest debt over building an emergency fund, or vice-versa?

I have a debt of $15,000 at a yearly interest rate of 9%, which can be paid within 5 years. Would it be better for me to: Build first the emergency fund (e.g. liquidity for 6 months' expenses ...
6
votes
5answers
551 views

Less than a year at my first job out of college, what do I save for first?

I have heard that 6 months of basic living expenses (about $11,000 usd for me) is a good idea to keep around in case of an emergency. Does this mean that All of my savings every month ($800 every ...
1
vote
0answers
77 views

A friend is trying to buy a house & needs cash quickly. Which option is better: cash advance, balance transfer, or what? [closed]

It's an emergency cash need for a friend. I was trying to analyze based on the various options what is the best way to go about this. Friend needs to arrange funds in a week. Please compare based on ...
0
votes
2answers
94 views

Are wage loss insurance programs worth the cost compared to having an emergency fund?

Anybody heard of these wage loss insurance programs? The idea is in my provence short term disability only pays out up to 8 weeks and long term disability does not kick in until 6 months. The idea is ...
6
votes
1answer
6k views

How many weeks of living expenses does the average American have savings for?

I've heard that an average American has only enough savings to cover 3 weeks worth of living expenses. (I think it was on some radio show.) Is it true? If so, does anyone have the source?
3
votes
3answers
284 views

When determining the size of one's emergency fund, do you also count hypothetical unemployment benefits?

Most sources say to have about 6-12 months of living expenses saved up in the event of a job loss. Is it wise to add the 6 months worth of unemployment benefits to the total of cash you have saved up? ...
3
votes
3answers
1k views

What investment options should I consider for my emergency fund?

I have an emergency fund with 3 months of income saved up. It is currently in a money market earning less than 1%. This money is saved in case I lose my job or need to make a major repair on my home. ...
3
votes
3answers
300 views

How should we prioritize retirement savings, paying down debt, and saving for a house?

My wife and I are newlyweds. We currently have 6 months' emergency fund (3 months are currently in a CD, and 3 months in a high-yield savings account.) We are contributing to get the full match in her ...
2
votes
0answers
39 views

Nonresident Travel Money (Card or Bank Account) Solution with Emergency Cash Feature in Euros?

I'm from the new EU so my country's banks are not that advanced that they can offer me this feature. So this will be a nonresident account for travel money. The solution I am looking for is like ...
10
votes
2answers
2k views

Should I pay off zero interest debt early?

My cash reserves are around $11k, including an emergency fund of about a month and a half, and I budget rigorously. The only debt I have is $7k at zero interest, paid at $300/month, and it's from a ...
3
votes
1answer
209 views

How to find a savings or money market account with a high interest rate / yield?

I have my emergency fund in an ING Direct savings account. The saving account does not really give a good return and I was wondering what are my options? I want to put the money in some sort of ...
8
votes
3answers
292 views

Should I dip into an emergency fund to cover expenses for a rental property or only use it to make emergency repairs, improvements, etc.?

My wife and I are looking to purchase a home in the near future. With this in mind I am curious about how we should now look at our emergency fund situation. The general guideline you will see is ...
5
votes
5answers
1k views

Roth IRA = Emergency Fund. Any Safe Investments?

I've been building my emergency fund through automatic deposits into a Roth IRA at TDAmeritrade. This has been working well, since the money is out of sight, out of mind, and I can easily withdraw it ...
6
votes
5answers
195 views

Is it worth the hassle to open a reward checking account for 4.09%?

I am trying to decide what to do with my emergency fund. Looking around I found a bank giving out a 4.09% APY up to $10K USD. This will generate approximately $34 USD/Month. They require that you ...
3
votes
3answers
84 views

Taxable money market fund vs. tax-free money market fund for emergency money?

I am trying to choose between a taxable or tax-free money market fund for my emergency money. What are the high level guidelines to choose one over the other? I know that the tax-free typically has ...
11
votes
2answers
390 views

Where should I store some cash that I need to be somewhat liquid?

I've got under $10,000 that I want to put somewhere more awesome than my no interest checking account. So far American Express Personal Savings at 1.15% APY is sounding nice. I can transfer out of it ...
18
votes
7answers
754 views

Importance of liquidity in emergency fund?

I know standard rules of thumb are that it is a good idea to have a liquid emergency fund of between of anywhere from 3-8 months of expenses (depending upon the source). How important is liquidity ...
0
votes
0answers
176 views

How much is appropriate for an emergency fund? [duplicate]

Possible Duplicate: As a general rule, how much in “liquid” emergency savings should I have? How can one calculate how much emergency fund should one put away? What factors? How ...
11
votes
8answers
376 views

What expenses do most people not prepare for that turn into “emergencies” but are not covered by an Emergency Fund?

I'm looking for expenses that most of us should be planning for, but that we may not think about. Some of these would be re-occurring expenses that happen infrequently, while others would be one time ...
8
votes
4answers
279 views

Should I switch to this high rate checking account for my emergency fund?

Okay, so I bank at a local credit union, AllegacyFCU. (Here is their rates sheet.) Currently I have through this bank: Daily Access Savings account with 0.2% interest Totally Free Checking (no ...
17
votes
2answers
329 views

What should I reserve “emergency savings” for?

Should I reserve my "emergency savings" solely for times of unexpected unemployment, or keep these savings flexible enough to cover other unforeseen critical needs?
8
votes
5answers
526 views

Should your rainy day / emergency fund be in the same account as general savings?

Should your rainy day / emergency fund be in the same account as general savings?
16
votes
5answers
1k views

Where should I park my rainy-day / emergency fund?

This is the US companion of the same question for Canadians Where can I park my rainy-day/ emergency fund?. Basically I want to know what options I have for my emergency fund?
6
votes
2answers
343 views

What expenses should be covered by an emergency fund

In going along with these questions http://www.basicallymoney.com/questions/83/as-a-general-rule-how-much-in-liquid-emergency-savings-should-i-have ...
11
votes
3answers
2k views

What percent of salary should go towards retirement vs. emergency savings?

What percent of salary should go towards retirement vs. emergency savings? Should some be set aside each and every pay for emergencies?
60
votes
8answers
4k views

Where can I park my rainy-day / emergency fund? Savings accounts don't generate much interest

Savings accounts don't seem to generate much interest. What other options do I have for my emergency fund?
10
votes
4answers
235 views

Homeowners: How can you protect yourself from a financial worst-case scenario?

Say your a home-owner, a first time buyer. You've just got your first flat and your about 1 year into your 25 year mortgage. Suddenly, something goes wrong with your job, and your made redundant ...
20
votes
13answers
16k views

As a general rule, how much in “liquid” emergency savings should I have?

I'm buying my very first home next week, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a ...