Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
How much emergency fund do you keep on hand? Is there any situation that I'd need a large amount (>$100,000) cash within the day?
I have most of my money in CD accounts. Theoretically, they are available within 5 business day in cash format, if I take an early withdrawal. If I only need a cashier's check, it would be available within the day - any branch can issue a cashier's check for an early CD withdrawal.
I just don't see any reason to keep more than $10,000 cash in a checking/saving account. I do have a few thousand at home just in case.
I'll make the assumption the OP means how much cash to keep at home. Any money in a bank is subject to federally imposed "bank holidays" and will not be available in a social (SHTF) emergency.
I would keep enough cash for 3 months of normal expenses plus food and gas. If it goes any longer the 3 months cash wont be worth much.
Only you can calculate your emergency fund, OP. For how long your emergency fund should cover your expenses?
It should precedence over any other savings, including retirement, college, or money earmarked for a down payment on a home.
So, depending on the demand of your profession, and how easy would be for you to find another job in case you lost yours, most people settle for comfortable 12 months, others think that 6-8 months should be sufficient.
Now you need to add all your monthly expenses:
housing payment (rent or mortgage, HOA), car payment, insurances ( house, car, health, life ), transportation cost (gas, bus, passes), average utility payments, phone, cable, Internet, medical costs ( co-payments ), child care ( if any), student loans ( if any), other loans, credit card payments, shopping (groceries, clothing, toiletry, etc.), car/house maintenance, other expenses - gifts, association/club fees, memberships, regular donations etc.
All that x 6, 8 or 12 (number of months) = that's your emergency fund.
I have 50k in a savings account, not because I want to but because my wife finds comfort in having this cushion and despite my repeated conversations about how to better utilize the funds I found much better return in quality of life by letting it go
You would never need money on an exact day....for anything that I can think of in today's world. 3-5 day transfers of money are more than enough time.
For the most part you could use a credit card to charge something. Take weeks to transfer some money over and pay off the card in full. Any other "expense" that I can think of would be planned or be given time to be paid off.
You would never need money on an exact day....for anything that I can think of in today's world. 3-5 day transfers of money are more than enough time.
For the most part you could use a credit card to charge something. Take weeks to transfer some money over and pay off the card in full. Any other "expense" that I can think of would be planned or be given time to be paid off.
I think so too. I have two cars. Even one is dead, I can make do for years without having to buy another.
I can't think any scenario short of SHTF we would need over $10,000 TODAY. Maybe to bail someone out of prison?
I'll make the assumption the OP means how much cash to keep at home. Any money in a bank is subject to federally imposed "bank holidays" and will not be available in a social (SHTF) emergency.
I would keep enough cash for 3 months of normal expenses plus food and gas. If it goes any longer the 3 months cash wont be worth much.
Very good point. Maybe I should keep $10k at home just in case.
Very good point. Maybe I should keep $10k at home just in case.
A time where you would need $10k cash on hand to pay for something that day?
I'll wait.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
