Quote:
Originally Posted by red92s
I think equally as important as having an emergency fund, is having an emergency plan. In my case, I pretty much knew exactly what bills, utilities, and expenses I'd cut in the event of income loss. So the day I was laid off, I canceled digital cable, the gym, and netflix. The next day I started the process of moving out of my apartment and in with my brother to save on rent.
My emergency fund was about 6 months of my "normal" expenses. It is probably about 12+ months on my "crisis" budget.
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That is a very good point/action to take, an emergency financial plan. I never really thought of planning what is expendable and what is not. I guess it doens't matter to me to much because I don't have many non mandatory expenses. But to someone who lives a more lavish lifestyle, and experiences financial hardships, that is an incredibly useful plan.