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Questions tagged [emergency-fund]

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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How much savings do home mortgage lenders expect borrowers to have after closing?

When applying for a mortgage as purchasing a home, there's lots said about expectations of down payment and monthly payment amounts, in terms of LTV, debt-to-income, and so forth. What's less broadly ...
Phil Miller's user avatar
0 votes
3 answers

In the US, what is a good way to get emergency money for a couple of weeks?

I am in between projects, being a software engineering contractor, so my paycheck won't arrive until about 2 to 3 weeks later. But I need about $2000 so that my credit card payments won't all bounce ...
Stefanie Gauss's user avatar
1 vote
1 answer

How would I set up a prenuptial nest egg for a partner that would be difficult for me, as the spouse, to coerce out of them?

I'm getting married soon, and I am fortunate enough to have a career where I can be a sole breadwinner. I want to offer that to my fiancee, but she has not previously lived in a situation where this ...
TheHans255's user avatar
0 votes
2 answers

Best way to invest emergency fund

Asking from the EU. I have emergency fund in a savings account yielding almost nothing. What is the best way to growth this emergency fund without taking too much risks, ie. not investing in stocks. I ...
elisa's user avatar
  • 1
1 vote
1 answer

Assessing the trade-off between exchange rate risk and potential higher interest returns on emergency savings in foreign currency

I currently reside in an EU country and earn a salary in EUR, the currency I primarily use for expenses. I have been researching ways to protect my emergency fund from inflation by keeping it in a ...
stemnic's user avatar
  • 11
1 vote
1 answer

Emergency Fund: CD Ladder or I Bonds?

I've been living below my income for a while now, and built up an emergency fund of 12 months comfortable expenses/18 months bare-bones expenses. Currently it's sitting in a savings account earning a ...
Anony Mouse's user avatar
36 votes
11 answers

Should we keep some of our emergency fund in cash at home? [closed]

We live in the US and have worked very hard to set aside 12 months of regular living expenses in an emergency fund. It is primarily to cover us in the event of an unexpected job loss, but it has also ...
nuggethead's user avatar
  • 2,081
1 vote
2 answers

Do I need a cash reserve when investing in stocks?

I would like to know if I need to keep a fraction of my assets in cash or if I can simply invest 100% into stocks. Here is my thinking: As a young person I'd like to keep most money in stocks and ...
boot4life's user avatar
  • 161
22 votes
12 answers

Pay off Loan With Savings or Keep Emergency Fund

A year and a half ago I took out a Career Development Loan(£7000, 9.9% interest). Which is currently around £4900 now. I have been saving for no particular reason, and I now have over £5000 in savings ...
Geo's user avatar
  • 332
1 vote
0 answers

Converting some of the rainy day fund to EUR

I live in a country where EUR is accepted at most shops, but it is not the official currency. I am wondering if it would make sense to convert a portion of my rainy day fund to EUR, to be somewhat ...
stihl's user avatar
  • 111
7 votes
2 answers

Should You Pay Off A Low Interest Loan From Emergency Fund

I have a car loan that is pretty low interest at 3.49%. It has 3k left and I have enough to take it out and still have an emergency fund for rent, and the small student loans I still have. Each month ...
workThrowAway's user avatar
21 votes
8 answers

Strategy to pay off revolving debt while building reserve savings fund?

We currently have about $16K cash. I'd like to have $30-35K+ for a ~6 month reserve. This will be a "single giant reserve fund" that will pay for large and/or unplanned expenses, frivolities like ...
David Z's user avatar
  • 360
12 votes
3 answers

Should I prioritize my 401(k) over my student loans?

Lately things have been a bit tight. Between student loan payments, my HSA, my 401(k) and bills my account balance isn't going up or down, its stagnant. I am wondering if I should decrease my savings ...
Rob's user avatar
  • 281
2 votes
3 answers

Bond fund vs High interest savings account

If you have some money - lets say 20k USD. Banks such as Ally provide 2.2% interest rate on Fixed deposits. Is investing in bond funds such as VBTLX safe and better than fixed deposit? Understand ...
18bytes's user avatar
  • 143
3 votes
4 answers

Elementary question about emergency fund and US Treasurys

Consider the following strategy for maintaining an emergency fund: continually reinvest ~$40k in 1-month US bonds at ~2.5% APY pay up to ~$10k using credit cards in case of emergency pay off credit ...
Patrick87's user avatar
  • 2,306
7 votes
3 answers

Emergency and Community Fund for families

We are about 20 families with common background and roots living in Massachusetts, closely related. We organize a reunion once a year. We also try to help each other financially when we can. To ...
sOltan's user avatar
  • 171
2 votes
1 answer

How to prepare for losing employer-provided insurance in my emergency savings?

I have an emergency fund that covers the next N months of life's expenses: rent, utilities, food, etc. But I recently realized I haven't accounted for insurance that is currently provided by my ...
Cornstalks's user avatar
1 vote
1 answer

How to allow some other person to access my bank (or PayPal) account in some emergency?

I was thinking in a situation for example like an accident, resulting in a coma or something like that. Is it possible to allow someone else to manage our bank or PayPal accounts in that case?
Enrique's user avatar
  • 593
6 votes
5 answers

Clear (agreed) overdraft or start emergency fund first?

From what I have read, the general consensus is that it is best to set up an emergency fund first and foremost before beginning the process of clearing debt, regardless of how illogical that approach ...
SnookerFan's user avatar
2 votes
0 answers

What is the equivalent of a nominee system in US banks?

If I want to ensure that my bank account funds are transferred to my parents, who live in India, (I would assume through some legal proceedings) in my absence, is there any method to nominate them ...
CS101's user avatar
  • 121
3 votes
3 answers

Buffer/emergency fund - correlation with age and wealth

I am getting out of debt and looking into setting up a small buffer for any possible emergencies before I start investing into stocks etc. Is there any guideline as to how much of a buffer one should ...
Katie H's user avatar
  • 33
3 votes
2 answers

Using a cash accumulation fund as emergency savings

My employer offers a cash accumulation fund alongside my group life insurance, with monthly contributions of up to $300. The interest rate is above most regular savings accounts, and like all cash ...
MisterStrickland's user avatar
76 votes
14 answers

What emergencies could justify a highly liquid emergency fund?

I've seen several questions (e.g. here) that challenge the need for complete liquidity in an emergency fund. Answers often focus not just on the potential for market downturns to affect your ability ...
Nicholas's user avatar
  • 2,871
56 votes
10 answers

Why do I need an emergency fund if I already have investments?

A lot of financial advisers say you should have an emergency fund, in addition to whatever else you're doing. I don't really see the benefit, but let me be more specific. I definitely see that it's ...
Stephen's user avatar
  • 871
24 votes
5 answers

How much money should I lock up in my savings account?

I'm a 28 software engineer. I make around 26k, of which about 40% I set aside every month. In my two-and-a-half years working I now have about 24k savings. I've recently opened an account that allows ...
Svalorzen's user avatar
  • 467
0 votes
1 answer

Big e-fund or little e-fund? [duplicate]

YNAB makes this point about emergencies: " When you’re budgeting each month for inevitable car repairs, the bill from the mechanic six months from now won’t be an emergency at all." So... have ...
RonJohn's user avatar
  • 50.7k
2 votes
3 answers

Looking for good investment vehicle for seasonal work and savings

I am looking for an ideal investment vehicle for the following situation a family member is in (and for which I'll soon be in also, as we both perform the same work). Our work is seasonal, and it ...
Superion's user avatar
8 votes
3 answers

Should I keep my emergency fund in a Roth IRA

I have been thinking about putting my emergency fund into a Roth IRA (in an FDIC insured High Yield Savings Account, so liquidity isn't an issue). My reasoning is as follows: I can always withdraw my ...
lzam's user avatar
  • 611
2 votes
2 answers

The most appropriate ways to keep money ready for emergencies?

Background info: My financial planner advised investing money in debt funds, mutual funds as long term investments, where in case of an emergency for large amounts, I could withdraw from the debt ...
Nav's user avatar
  • 235
25 votes
8 answers

Should Emergency Funds be Used for Infrequent, but Likely, Expenses?

Say we break down non-monthly costs into the following three categories. High level of predictability: This would include oil changes that may be needed every 2 to 4 months depending on usage, car ...
danjuggler's user avatar
24 votes
4 answers

How much (paper) cash should I keep on hand for an emergency?

I used to keep $150 hidden in my car for emergencies. I keep less than $100 in small bills in a backpack with food and water for use during natural disasters. I've got a fire safe in my house for ...
NL - Apologize to Monica's user avatar
0 votes
4 answers

What, exactly, do you mean by an "Emergency Fund"?

This seems like a phrase that gets mentioned in just about every thread here, yet also seems pretty ill-defined. I'm guessing that it might be that it's basically a way to tell financially ...
Stack Tracer's user avatar
1 vote
2 answers

I have a 3 month emergency fund. What should I aim to increase it to?

I have 3 months of basic expense saved. I am reading the expense needs to be atleast 3-9 months. Should I increase the size of this expense to 9-12 months as my next goal since I am thinking ...
user avatar
8 votes
3 answers

Is it a right decision to pull money from emergency fund to buy a liability but need?

I have an emergency fund and some money saved to buy a car which is my need. The newer versions of the car can be bought if I pull a major portion of the money from my emergency fund. My job would ...
user avatar
4 votes
3 answers

Whole Life Insurance As Inflation-Protected Liquid Cash Savings (Emergency Fund)

A financial advisor (Northwest Mutual) told me I should buy a whole life insurance policy as an inflation-protected liquid cash savings. What he said is that while the yield is low, in the long term (...
user50757's user avatar
2 votes
2 answers

What is the best place to put one's emergency funds?

I have been able to save 3 months expenses. I want to save it separately so I don't mix it or use it by mistake while using my debit card. My bank doesn't allow a separate emergency fund account. ...
user avatar
2 votes
3 answers

How do I not forget where my money is? [closed]

I've recently put away a fair bit of money in a high interest savings account. I consider this to be my emergency fund. One of my big fears though is that I will forget about this money. This may ...
David says Reinstate Monica's user avatar
0 votes
4 answers

Should market based health insurance premiums be factored into 6 months emergency fund savings?

I know it's advised to save between 4 to 7 months of regular expenses for an emergency fund. What I'm not sure about is if health insurance premiums should be factored into those expenses? I'd be ...
Peter Smith's user avatar
2 votes
2 answers

Hard time keeping money in the bank

I have a hard time keeping extra money in the bank (in addition, building on an emergency fund). It's not that I spend it...its that I immediately transfer it either to Fidelity to fund a 401k/roth ...
JonH's user avatar
  • 1,395
45 votes
7 answers

Using Emergency Fund to Sell Upside-down Car

My husband and I have an upside-down car loan, which means that we owe more on the loan (about $10,000) than the car is worth (only about $7,000). We are paying a pretty substantial amount each month ...
Amy's user avatar
  • 453
6 votes
3 answers

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 ...
John Doucette's user avatar
36 votes
6 answers

Is there an advantage to keeping a liquid emergency fund if one also has an untapped line of credit?

I've seen several financial advice websites and books that recommend keeping some amount of money (usually a function of your monthly expenses) in cash as an emergency fund. See for example questions ...
John Doucette's user avatar
3 votes
1 answer

Savings account with mango money for emergency fund

I have just started my career a couple of months back and plan to save money for emergency funds. I was browsing the internet for a good savings account and came across Mango Money savings (6% APY ...
Ram's user avatar
  • 195
3 votes
2 answers

Can I rely on my home equity to finance large home repairs?

There are certain "big ticket" home repair items with long expected lifetimes, such as your furnace or your roof, that could fail suddenly before that lifetime is up and need immediate replacement. ...
Air's user avatar
  • 131
3 votes
2 answers

Does keeping 'long-term' safety net in bonds make sense?

I was looking at various advices regarding safety net and emergency fund. Usually most sites recommend using the savings account and CDs as a safety net. As CDs/Savings are FDIC insured it's 'safe ...
User's user avatar
  • 45
20 votes
4 answers

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 ...
Zaenille's user avatar
  • 4,334
5 votes
2 answers

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, ...
user20268's user avatar
  • 137
22 votes
3 answers

Are precious metals/collectibles a viable emergency fund?

My friend received a gift from a family member in the form of silverware. The exact value is unknown but it is enough to cover 6+ months worth of expenses. I estimate it is a significant portion of ...
stonk-overflow's user avatar
1 vote
3 answers

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 ...
T. Thomas's user avatar
  • 383
3 votes
3 answers

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 ...
SahuKahn's user avatar
  • 334