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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.

2
votes
0answers
51 views

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 ...
3
votes
3answers
236 views

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 ...
1
vote
0answers
164 views

What is the most private way to bank? [closed]

I am looking to keep a couple grand as an emergency fund in an account that is as hard to find as possible. Nothing special, just a cash deposit that can sit there until I need it, which is hopefully ...
3
votes
2answers
157 views

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 ...
-2
votes
2answers
139 views

Teenagers and Financial Advice [closed]

What do you believe is ground zero/basis for teenager money management? Teens in specific. A specific area they should know about, comprehend, understand.
74
votes
14answers
15k views

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 ...
51
votes
9answers
10k views

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 ...
25
votes
5answers
8k views

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 ...
1
vote
1answer
95 views

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 ...
2
votes
3answers
83 views

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 ...
8
votes
3answers
419 views

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 ...
2
votes
2answers
306 views

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 ...
25
votes
8answers
6k views

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 ...
18
votes
3answers
13k views

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 ...
-1
votes
4answers
252 views

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 ...
1
vote
2answers
287 views

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 ...
10
votes
3answers
2k views

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 ...
5
votes
1answer
582 views

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 (...
2
votes
2answers
222 views

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. ...
2
votes
3answers
227 views

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 ...
0
votes
4answers
143 views

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 ...
2
votes
2answers
672 views

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 ...
42
votes
7answers
7k views

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 ...
5
votes
3answers
216 views

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 ...
36
votes
6answers
6k views

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 ...
3
votes
1answer
533 views

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 ...
3
votes
2answers
143 views

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. ...
2
votes
2answers
342 views

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 ...
20
votes
4answers
4k 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
3answers
3k 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, ...
21
votes
3answers
5k views

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. It is stored in a place of residency to be ...
1
vote
3answers
442 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
795 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 ...
21
votes
8answers
5k 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 ...
8
votes
6answers
476 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
2k 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
2answers
137 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
7k 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
889 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
480 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
67 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 AMEX'...
18
votes
3answers
15k 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 ...
9
votes
2answers
411 views

How much is enough to save as a rainy-day fund before I start plugging my higher-interest student loans?

Typically, what is considered realistic? 6 months expenses? A year? I understand this is more of an "opinion" question but I am still curious what people think is a responsible buffer (in the event of ...
3
votes
1answer
382 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
432 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 ...
7
votes
5answers
2k 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
270 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
171 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 ...
12
votes
2answers
761 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 ...