What do you do with your emergency fund?

[flash]

Depends upon how you define your emergency fund. Is it separate from savings and other investments, i.e., you have other assets, or is it your only asset? Do you mean liquid, or can be accessed with a penalty?

We keep enough for expenses in a savings/checking combo, an emergency fund rolled into a high yield short term investment, anywhere from two months to 9 months, depending on where we are in our investment cycle. Money can "rest" in a short term investment, while we determine long term strategies. Then we have separate serious investments, which we could liquidate if needed, and roll the money either back in or into other investments.

[robex]

We have $10,000 in a savings account. In January 2006 I started buying a $500 GIC every month, and hope to be able to do so for 2006/2007. Dh and I both work part time and so if one of us lost our job, that $1000.00 a month, plus some cutbacks, and not including unemployment, would be enough to easily cover our expenses for a year. That's my little plan anyway--fingers crossed we won't have to check it out!

[lucasrd]

I really don't care what kind of return I get on my emergency fund since I'm not using it as an investment vehicle. Therefore I suggest keep it safe and easily accessible. I have mine in a high-yield savings acct at ING Direct.

My other CASH assets I have laddered in CDs.

[emptyspaces]

Originally Posted by Haku

Let's say you have 10k saved up as your emergency fund. What do you do with this money? Just let it sit in a high interest online bank? Or do you have it split or laddered somehow with bonds or CDs? What would you do to get the most out of it while still maintain its ability to protect you in case of an emergency?

an emergency fund is something that is accessible in times of need. hence it needs to be liquid.

if it isn't, by definition it isn't an emergency fund is it??

i currently have 1 yrs living expenses in CASH.

[TBH]

Originally Posted by emptyspaces

i currently have 1 yrs living expenses in CASH.

Do you mean that literally? As in, paper money?

BTW, what's your address?

[Ima saver]

Gosh I started out the beginning of the year with at least 6 years of living expenses in cash! Want my address too?

[TBH]

Originally Posted by Ima saver

Gosh I started out the beginning of the year with at least 6 years of living expenses in cash! Want my address too?

Only if it's literally in cash in your house somewhere.

Seriously, that seems risky to me. I try to keep $100 in cash in the house, but not more.

[Ima saver]

Oh, it is not at my house. I did not mean to imply that. It is sitting in a money market and a savings account earning interest!! I just meant it was cash, not tied up in c.d's, mutual funds, etc. I don't keep much money here.

[emptyspaces]

Originally Posted by claire

Do you mean that literally? As in, paper money?

BTW, what's your address?

well money in the bank is the same as cash.

[TBH]

Sorry, bad joke.

[Ima saver]

That is what I thought, money in the bank IS the same as cash. Thanks goodness it is earning around 4 %