emergency fund how much and what are you doing?

[disneysteve]

have not had to tap my emergency fund as I am at about 150% employment since the quarantine began.

Despite all the folks losing jobs and getting laid off, there are definitely places that have ramped up business.

[cypher1]

Probably not the smartest thing, but I've been expanding the EF and investing during this crisis. I've said it in previous threads that I maintain a larger than advisable cash position in case opportunities arose. In hindsight, this may have been a good move. We shall see if opportunities come up as the crisis deepens. It's still early.

I'm kind of in the same boat with putting aside a larger chunk of cash for these recent buying opportunities. But I'm slowing down on that, and re-evaluating building my cash back up.

My main EF is 6-9 months of expenses, which I may bump up to 10-12 months depending on how my job is later this year. With the base EF in place, additional cash savings is being divided between home improvement/repair fund, tuition fund (even if employer is paying), and taxable investments/Roths moving forward. I also include a small portion of my HSA (90% tied to investments now) as part of the my EF.

[Snydley]

We have a heavy EF (175K) because DH felt more comfortable with the extra saving, even though we aren't maxing our possible retirement contributions. Our house is also almost paid off (4 years left). These choices were primarily for his piece of mind and I think may work out well for us, as we'd like to buy a vacation home in Florida. I also want to buy out some deadbeat relatives who took over 60% ownership of a beautiful lakefront lot in the Adirondacks that holds great sentimental value to me. I'm likely going to offer them a little over what they paid for it (they paid ~35K when they bought from another relative) and far less than its worth. They will likely be out of work and need the cash bad.

At my work, I had just secured 5 years of independent research funding (immunology related to HIV) and this situation has made my job bulletproof for a much longer time I think. The NIH has already emailed tons of new grant opportunities related to COVID-19.

I'll just stay the course with investments into our 401K as I'm only 45 and won't need the money for a while.

I shudder to think of all of the people without 6 months expenses in the bank.

[Fishindude77]

I am actually looking to pay cash for a business that someone needs out of. I have no idea what kind of business, I'm just keeping my eyes and ears open. It could be pretty much anything, and I'm not opposed to even taking a controlling interest in company and having a general partner run the thing. Picking up some good farm land might not be bad if it was the right price.

I'm always on the hunt for another piece of farm ground. We typically average about a 4% return year in / year out which is pretty good in today's environment, almost zero chance of a loss, plus you are going to get some appreciation in value if you hang onto it for a while.

[ua_guy]

The EF has continued to grow and became bloated. Before all "this" happened we were discussing possibly investing half of it, but hadn't really ruled out our fear of a market crash or other hiccup related to current politics and so we felt more comfortable keeping it as cash. We were also kicking around the possibility of moving home this year and what it would take to buy back into that housing market where we'd need cash.

Then **** hit the fan, although we are very lucky to both have jobs in demand right now and will just keep on saving. Our EF will presently last us years of unemployment and that's a good fear to not have right now.

[LivingAlmostLarge]

The EF has continued to grow and became bloated. Before all "this" happened we were discussing possibly investing half of it, but hadn't really ruled out our fear of a market crash or other hiccup related to current politics and so we felt more comfortable keeping it as cash. We were also kicking around the possibility of moving home this year and what it would take to buy back into that housing market where we'd need cash.

Then **** hit the fan, although we are very lucky to both have jobs in demand right now and will just keep on saving. Our EF will presently last us years of unemployment and that's a good fear to not have right now.

Are you thinking of not moving anymore?

Personally I keep toying with two ideas. One I'll either add on to our house at a stellar deal. Or two I might be able to snag a house i wasn't expecting because prices drop.

Second I think the investment properties I kept thinking about is going to become reality. I think jobs are going to take a huge hit and foreclosures are coming. I'm going to buy something.

Third I think that I'm going to score my DH a tesla. A used one. I think a lot of people stretched to buy them and I wonder if they can really afford them? Is it wrong to rub my hands and wait?

[ua_guy]

Are you thinking of not moving anymore?

Personally I keep toying with two ideas. One I'll either add on to our house at a stellar deal. Or two I might be able to snag a house i wasn't expecting because prices drop.

Second I think the investment properties I kept thinking about is going to become reality. I think jobs are going to take a huge hit and foreclosures are coming. I'm going to buy something.

Third I think that I'm going to score my DH a tesla. A used one. I think a lot of people stretched to buy them and I wonder if they can really afford them? Is it wrong to rub my hands and wait?

Still want to move, but we've paused to wait and see. We want to be strategic about it. Having income and no debt right now while everything goes to hell isn't the worst thing.

I don't think it's wrong to be opportunistic for the right reasons. Our eyes are open for the right piece of land, business opportunity, or job opening.

I'm also watching the classic car market. You know there's stuff that's going to come on because someone needs a quick sale.

[bjl584]

I'm still working, so my EF fund hasn't been touched.

[~bs]

Still want to move, but we've paused to wait and see. We want to be strategic about it. Having income and no debt right now while everything goes to hell isn't the worst thing.

I don't think it's wrong to be opportunistic for the right reasons. Our eyes are open for the right piece of land, business opportunity, or job opening.

I'm also watching the classic car market. You know there's stuff that's going to come on because someone needs a quick sale.

you should wait until blood runs in the streets. you're cash heavy at this time? Perfect situation if opportunities arise. During the last recession, any luxury goods, including classic cars absolutely tanked.

[ua_guy]

you should wait until blood runs in the streets. you're cash heavy at this time? Perfect situation if opportunities arise. During the last recession, any luxury goods, including classic cars absolutely tanked.

I'm not sure blood will run in the streets, though. I'm not a mystic or anything but I don't think the housing market will tank. I could be really wrong, but hear me out: Builders are losing their shorts right now and putting projects on hold, so new inventory won't be 'a thing' for another year. Anyone who was facing default just got 6 months leniency, and will stay in place. Also - lessons learned by big banks during the recession means they will now do everything so they're NOT holding a bag of foreclosed houses when this is all over. Most elective moves are on hold. Combined with practically no-interest financing and inventory constrained like never before, I think it will prop up current pricing in major areas.

Now, the classic car market...I have no idea. I can see people selling stuff for cash, and it comes at a time where I don't have any more room, which is unfortunate.

[LivingAlmostLarge]

I'm not sure blood will run in the streets, though. I'm not a mystic or anything but I don't think the housing market will tank. I could be really wrong, but hear me out: Builders are losing their shorts right now and putting projects on hold, so new inventory won't be 'a thing' for another year. Anyone who was facing default just got 6 months leniency, and will stay in place. Also - lessons learned by big banks during the recession means they will now do everything so they're NOT holding a bag of foreclosed houses when this is all over. Most elective moves are on hold. Combined with practically no-interest financing and inventory constrained like never before, I think it will prop up current pricing in major areas.

Now, the classic car market...I have no idea. I can see people selling stuff for cash, and it comes at a time where I don't have any more room, which is unfortunate.

time to get cheap storage space. Maybe buy a garage or home for the garage....lol

[mo0n]

I'm still working, so my EF fund hasn't been touched.

Same here.

[Nutria]

Just yesterday I finished fully funding a 12 month EF. The money I was funneling into that has gone into increased spending, charity and mostly "unallocated money" (of which most is going into the stock market).

[~bs]

I'm not sure blood will run in the streets, though. I'm not a mystic or anything but I don't think the housing market will tank. I could be really wrong, but hear me out: Builders are losing their shorts right now and putting projects on hold, so new inventory won't be 'a thing' for another year. Anyone who was facing default just got 6 months leniency, and will stay in place. Also - lessons learned by big banks during the recession means they will now do everything so they're NOT holding a bag of foreclosed houses when this is all over. Most elective moves are on hold. Combined with practically no-interest financing and inventory constrained like never before, I think it will prop up current pricing in major areas.

Now, the classic car market...I have no idea. I can see people selling stuff for cash, and it comes at a time where I don't have any more room, which is unfortunate.

Really depends on how long this thing lasts. Builders get killed in regular recessions and stop building. Same thing, except this event is more immediate. But the recessionary factors in this event is more immediate as well. They did the same propping during the last recession

The main question is how long this will last. In the short term what you're saying is correct. But if this drags out, things will be very different.

[LivingAlmostLarge]

it probably also depends if people were prepared for this recession.