Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

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.

An emergency fund is personal money set aside and saved as a safety net in case of unexpected expenses. The goal of an emergency fund is to protect the owner in case of financial trouble, and to prevent them from having to sell other assets or go into debt to cover a sudden expense.

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Where can I park my rainy-day / emergency fund? Savings accounts don't generate much interest

Savings accounts don't seem to generate much interest. What other options do I have for my emergency fund?
S. Chang
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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 to liquidate assets, but even the 2-3 day delay…
Nicholas
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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 good to "have money available" so that you don't…
Stephen
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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 in insurance and car payments (over $300 a month)…
Amy
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Is there a good rule of thumb for how much I should have set aside as emergency cash?

I'm buying my very first home, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a pretty solid reserve. How much money should I hold in an…
Jeffrey
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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 here, here, and here My question centers around…
John Doucette
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Should we keep some of our emergency fund in cash at home?

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 come in handy for other unpleasant surprises…
nuggethead
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Where should I park my rainy-day / emergency fund?

This is the US companion of the same question for Canadians Where can I park my rainy-day/ emergency fund?. Basically I want to know what options I have for my emergency fund?
Leigh Riffel
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Importance of liquidity in emergency fund?

I know standard rules of thumb are that it is a good idea to have a liquid emergency fund of between of anywhere from 3-8 months of expenses (depending upon the source). How important is liquidity for such a fund? I recognize it makes sense to…
Michael McGowan
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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 insurance (if paid every 6 month), car…
danjuggler
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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 me to lock money into a savings account - the…
Svalorzen
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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 legal documents and computer backups. Should I have a…
NL - SE listen to your users
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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 their net worth. They don't have any sentimental…
stonk-overflow
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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 that is just sitting there. So I was thinking of…
Geo
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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 months of expenses (let's say 12 months), how risky…
Craig W
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