Re: Emergency Fund - do you have one?
I usually advocate that people keep their emergency fund separate from their "occasional unexpected purchases" fund. For instance, we have money saved separately for when our water heater dies, or we have to replace the tires on the car, etc. The real problem with mixing the two is that you can find yourself in an uncomfortable situation if you have a big expense come along, tap your emergency fund/slush fund, and THEN have a life situation hit. If you lose your job right after spending half your funds on a new furnace, you can be stretched real thin in a hurry.
My emergency fund is my "sleep well at night" fund. I'm not touching that unless something is keeping me up.
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