Timeline for How does the importance of a cash emergency fund change when you live in a country with nationalized healthcare?
Current License: CC BY-SA 3.0
5 events
| when toggle format | what | by | license | comment | |
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| May 7, 2015 at 21:03 | comment | added | Jay | If someone who was making $1 million a year suddenly finds himself broke, let's say I won't be at the head of the line to make contributions to bail him out either. But that's exactly why someone in such a position should have good financial planning -- because few will feel sorry for him if he screws up. | |
| May 7, 2015 at 17:15 | comment | added | Ghanima | If you're used to $1M the discussion about EF should not be of irrelevance. Either you know how to handle money or you will certainly not deserve my pity. | |
| May 7, 2015 at 16:45 | comment | added | Jay | @Ghanima You'd have to know the individual's situation. How much would he get in unemployment benefits and for how long? If you're used to living on $40,000 a year and unemployment gives you $20,000, you might manage. If you're used to living on $1 million a year and are suddenly cut to $20,000, that's going to feel like grinding poverty -- and realistically, if you haven't set something aside, you might lose your house, your car, your yacht, etc. | |
| May 6, 2015 at 9:24 | comment | added | Ghanima | I'd argue that countries with strong nationial healthcare system typically also provide an unemployment insurance. So the zero-income scenario is highly unlikely at least for short term unemployments. So a cash EF would mainly cover unforeseen expenses (like broken home appliance, broken car). This of course assumes that everyday living could proceed with that reduced supplemental income (which might not hold true for everyone). | |
| May 5, 2015 at 17:37 | history | answered | Rocky | CC BY-SA 3.0 |