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Well that's a recipe for disaster. Emergency funds should be able to hand 3-6 months of expenses, sometimes more.
by _dark_matter_ 13y ago
Well that's a recipe for disaster. Emergency funds should be able to hand 3-6 months of expenses, sometimes more.
- josephmc5 13y agoCompletely agree. This is one of those "it isn't important until you need it" things.
- 16bytes 13y agoYour emergency funds don't need to be cash in low interest savings/checking. For example, home-equity line of credit is great for just sitting there most of the time unless you really need it. That frees up capital that you'd otherwise tie up in liquid cash that doesn't do anything.
- morgante 13y agoSure. But there's absolutely no reason your entire emergency fund has to be in cash. Sure, keep the first month or two in cash but anything beyond that could easily be kept in an investment and liquidated when necessary.