tag:blogger.com,1999:blog-37886248.post1491957989816583048..comments2024-03-22T00:35:19.082-07:00Comments on Casual Kitchen: Money Sundays: The "Stoplight Rule" For Creating An Emergency FundDanielhttp://www.blogger.com/profile/02388302796031288076noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-37886248.post-65057834016177913582013-12-13T05:38:11.940-08:002013-12-13T05:38:11.940-08:00Anon: I'll field your question in an upcoming ...Anon: I'll field your question in an upcoming post. To an extent you're asking the wrong question. <br /><br />Chacha, it's great to hear about your progress on this front. That's spectacular!<br /><br />DK<br /><br />Danielhttps://www.blogger.com/profile/02388302796031288076noreply@blogger.comtag:blogger.com,1999:blog-37886248.post-46164221403392894832013-12-09T09:18:36.089-08:002013-12-09T09:18:36.089-08:00We're in the "yellow light" zone aft...We're in the "yellow light" zone after my past year's successful savings project.<br /><br />Until we actually have enough in the liquid savings fund to put a down-payment on a property, I'm considering it our "emergency fund." Though historically, we have been in the habit of using credit cards to meet unexpected expenses such as big-ticket car maintenance items (new tires: expected. rebuild transmission: unexpected.) and then pay it off out of savings or out of our regular income.<br /><br />I don't consider my retirement savings to be "emergency fund," although legally we could use it that way. Taking money out of there for anything other than a true catastrophe would be long-term stupid.<br /><br />We are still young enough that the most likely financial crunch scenario could be dealt with simply by moving to a less expensive apartment. <br /><br />Neither of us especially wants to stop working, so that definition of financial freedom doesn't apply. If one of us HAD to stop working it would be due to a disabling event, in which case no amount of "emergency" fund would be enough.chacha1http://www.ombailamos.comnoreply@blogger.comtag:blogger.com,1999:blog-37886248.post-86836398007766532942013-12-08T07:12:48.542-08:002013-12-08T07:12:48.542-08:00Define "emergency fund." What if you hav...Define "emergency fund." What if you have "over-saved" for retirement, as in: "I will be wealthier in retirement than before retirement." Does continuing to put more money into a retirement fund constitute an emergency fund, but one that actually has returns? I've always been bugged by putting money in a place with no substantial returns (like a savings account). <br /><br />Further, how do you compensate for the job stability you have (or do not have)? I'm extremely income stable (benefit comes with lower than market value income). Shouldn't there be an adjustment in how much should be saved/available?Anonymousnoreply@blogger.com