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John Doucette
John Doucette
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In one of the answers to this question, it was mentioned that the primary cause of bankruptcy in the US is related to health expenses, and this is one reason to keep an emergency fund.

Since most of the advice I've seen is targeted toward people in the US, this makes me wonder how important an emergency fund actually is when healthcare expenses are not taken into account (i.e. if one lives in a country where these things are paid for collectively; healthcare is not dependent on your employer, etc.).

It would be especially interesting if someone has good statistics on, for example, the probability of an emergency requiring $x occurring per year in both the US, and economies like the UK or Canada. I realize that the definition of "emergency" is somewhat subjective, but if the question has been answered with any reasonable definition, that would be a great starting place.

Edit: To be clear, I'm not asking whether or not one still needs an emergency fund. I have no trouble imagining situations where one might be needed. What I want to know is how the risks of large financial shocks change, so I can make an informed decision about how big a fund is needed. I've asked the question generally, because my risk tolerance is likely different from other people's. A general answer that quantifies the risks involved would thus allow any person to assess them individually.

In one of the answers to this question, it was mentioned that the primary cause of bankruptcy in the US is related to health expenses, and this is one reason to keep an emergency fund.

Since most of the advice I've seen is targeted toward people in the US, this makes me wonder how important an emergency fund actually is when healthcare expenses are not taken into account (i.e. if one lives in a country where these things are paid for collectively; healthcare is not dependent on your employer, etc.).

It would be especially interesting if someone has good statistics on, for example, the probability of an emergency requiring $x occurring per year in both the US, and economies like the UK or Canada. I realize that the definition of "emergency" is somewhat subjective, but if the question has been answered with any reasonable definition, that would be a great starting place.

In one of the answers to this question, it was mentioned that the primary cause of bankruptcy in the US is related to health expenses, and this is one reason to keep an emergency fund.

Since most of the advice I've seen is targeted toward people in the US, this makes me wonder how important an emergency fund actually is when healthcare expenses are not taken into account (i.e. if one lives in a country where these things are paid for collectively; healthcare is not dependent on your employer, etc.).

It would be especially interesting if someone has good statistics on, for example, the probability of an emergency requiring $x occurring per year in both the US, and economies like the UK or Canada. I realize that the definition of "emergency" is somewhat subjective, but if the question has been answered with any reasonable definition, that would be a great starting place.

Edit: To be clear, I'm not asking whether or not one still needs an emergency fund. I have no trouble imagining situations where one might be needed. What I want to know is how the risks of large financial shocks change, so I can make an informed decision about how big a fund is needed. I've asked the question generally, because my risk tolerance is likely different from other people's. A general answer that quantifies the risks involved would thus allow any person to assess them individually.

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John Doucette
John Doucette
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How does the importance of a cash emergency fund change when you live in a country with nationalized healthcare?

In one of the answers to this question, it was mentioned that the primary cause of bankruptcy in the US is related to health expenses, and this is one reason to keep an emergency fund.

Since most of the advice I've seen is targeted toward people in the US, this makes me wonder how important an emergency fund actually is when healthcare expenses are not taken into account (i.e. if one lives in a country where these things are paid for collectively; healthcare is not dependent on your employer, etc.).

It would be especially interesting if someone has good statistics on, for example, the probability of an emergency requiring $x occurring per year in both the US, and economies like the UK or Canada. I realize that the definition of "emergency" is somewhat subjective, but if the question has been answered with any reasonable definition, that would be a great starting place.