Sunday, March 2, 2014 - 11:37 AM
For all the talk on CDs and bank accounts and savings, why doesn't anyone bring up the issue of having an emergency fund? I don't have one although I have intended to over the past decade, but it seems like a good topic nevertheless. How much do you keep, and where?
1. Sunday, March 2, 2014 - 12:32 PM
An Emergency Fund is not something you do by talking about it. You "do" it. I always keep a certain amount of money in either a savings account or a CD which will renew in a year I expect to have larger bills to pay. It can be anything from $5,000 on depending on what your needs are. We discussed this a while back but maybe you missed the posts. Your Emergency Fund should not be in your long term best paying CDs because it should be considered "liquid" funds and not CDs you would have to cash out early to get needed extra cash.
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2. Sunday, March 2, 2014 - 4:18 PM
MSM do a forum search to find previous posts relating to emergency funds. Generally have enough liquid cash available to meet your living needs for 6 months. Intending to start one does you no good. You need to begin and be disciplined to set aside funds to meet your needs. I have a money market account with sufficient funds. Then I ladder my cd's so I always have new money available. If I do not need the money upon maturity it goes back into a cd.
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3. Sunday, March 2, 2014 - 4:47 PM
I also have laddered CD's but also have 4 Reward checking accounts. Have never had to use the emergency fund in the 52 years I have been married. Have been very lucky. JUST DO IT. You must live on less than you make. Your rent or house payment must not be more that one weeks take home pay. Do what you have to do to be able to do this, get a roommate etc.
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Jan 16, 2010
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