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  #21 (permalink)  
Old 08-21-2017, 06:56 AM
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We don't have an Emergency Fund.

That's because we "give every dollar a job", and thus have funds like:
  1. Uncategorized savings
  2. Christmas Club
  3. Medical
  4. DW college tuition
  5. Vacation
  6. Car
  7. Home/appliance repair
  8. Quick-needs travel
  9. Job Loss

If I lost my job, then we'd first drain, naturally, the Job Loss fund, and then poach from the other funds. We could easily live 6 months like that.

Ditto for medical emergency, broken appliance, etc. There's $1000 extra in the Auto Insurance fund (used to accumulate semi-annual payments) to pay the deductible.

The benefit of this for impulsive spenders like us is that it is a lot more tempting to raid one huge amorphous pile of cash for a 60" TV than it is to raid the Car fund, or even the Home/appliance repair fund.
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  #22 (permalink)  
Old 08-21-2017, 07:28 AM
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Quote:
Originally Posted by Nutria View Post
We don't have an Emergency Fund.

That's because we "give every dollar a job", and thus have funds like:
  1. Uncategorized savings
  2. Christmas Club
  3. Medical
  4. DW college tuition
  5. Vacation
  6. Car
  7. Home/appliance repair
  8. Quick-needs travel
  9. Job Loss
You have an emergency fund. You just don't call it that.
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  #23 (permalink)  
Old 08-21-2017, 07:40 AM
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Originally Posted by disneysteve View Post
You have an emergency fund. You just don't call it that.
I would dispute that, since more than half of those funds will at some point be spent on non-emergency items.
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  #24 (permalink)  
Old 08-21-2017, 07:43 AM
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Originally Posted by Nutria View Post
Zero where I live, and when I went out of town to visit my mother.
I had to go get an MRI at one of local hospitals last week, and it is the same with both. I was only there a little over an hour and had to pay $3 for parking. It starts out at $2 and works its way up. The other hospital has a parking garage as well plus metered parking and the meters take about 25 cents for 15-20 minutes, so you really must feed them or the or get a ticket. Personally, I think that those coming for emergency treatment and or hospital admission, having to worry about that one more thing of paying for parking. You are fortunate. When I was working at each hospital individually at a time, I learned where I could park for free and still not have a walk to my car at 11:30 PM. They have done too much construction now and I don't know my way around anymore. So yep, in my town having to go to the hospital or visiting a family member admitted there we must pay for parking. Even the vending machines they gouge with higher than normal prices.
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Old 08-21-2017, 08:13 AM
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Quote:
Originally Posted by Nutria View Post
I would dispute that, since more than half of those funds will at some point be spent on non-emergency items.
I think we're arguing semantics here.

To me, the number one purpose of my emergency fund is a job loss, so you've got that covered with #9. Medical expenses are probably second to me so #3 on your list. Car and home repairs come next, so #6 and #7 for you.

What many people call their emergency fund is one account (or group of accounts) intended to cover several of the things on your list. You just choose to itemize it, which is perfectly fine. Whatever works and keeps you on track to be prepared for future stuff is the way to go.
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  #26 (permalink)  
Old 08-21-2017, 08:30 AM
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Quote:
Originally Posted by disneysteve View Post
I think we're arguing semantics here.

To me, the number one purpose of my emergency fund is a job loss, so you've got that covered with #9. Medical expenses are probably second to me so #3 on your list. Car and home repairs come next, so #6 and #7 for you.

What many people call their emergency fund is one account (or group of accounts) intended to cover several of the things on your list. You just choose to itemize it, which is perfectly fine. Whatever works and keeps you on track to be prepared for future stuff is the way to go.
I'm definitely prepared for emergencies, and yes it's semantics. But I think that's important since they shape how we communicate -- and thus think.
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Old 08-21-2017, 08:53 AM
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I'm definitely prepared for emergencies, and yes it's semantics. But I think that's important since they shape how we communicate -- and thus think.
Fair point, especially because many things people say were "emergencies" really weren't. For example, someone will say they "had to" rack up credit card debt because their car needed new tires. Sorry, that's not an emergency. That is a predictable recurring maintenance cost that comes with owning a car.
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  #28 (permalink)  
Old 08-21-2017, 10:14 AM
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Originally Posted by disneysteve View Post
Fair point, especially because many things people say were "emergencies" really weren't. For example, someone will say they "had to" rack up credit card debt because their car needed new tires. Sorry, that's not an emergency. That is a predictable recurring maintenance cost that comes with owning a car.
As is Christmas! Birthdays, and all sorts of things. Even though I have been poor, I never or rarely have the 'emergencies' that others seem to have. They have never learned the motto of "use it up, wear it out, make it do or do without". I have known one woman, first as a child that I knew and as she grew up, got married and had kids and while I don't much contact with her these days, everything was an emergency or a problem. Every 'emergenicy' was a chance to get attention pulled to her. Everyone knew about what was going on with her and her family as she told everyone so she could get sympathy and attention. Even though she wasn't blond, she was the perfect definition of a dumb blond totally ditzy. Everything to her was an emergency and they were broke all the time.
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  #29 (permalink)  
Old 09-13-2017, 07:29 PM
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Give your cash to me.
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  #30 (permalink)  
Old 09-14-2017, 10:29 AM
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A lot of people are broke all the time. I hear it even from friends. I'm like what the heck did you spend money on during this pay period. And then it comes out. We bought a nintendo switch. New ipads. Etc, etc, etc. You can't be broke making $100k+. Seriously. I hate to be mean but when they say they are struggling I'm thinking like average income $70k, but when you make double that and struggle. PLEASE.
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  #31 (permalink)  
Old 09-14-2017, 10:56 AM
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A lot of people are broke all the time. I hear it even from friends. I'm like what the heck did you spend money on during this pay period. And then it comes out. We bought a nintendo switch. New ipads. Etc, etc, etc. You can't be broke making $100k+. Seriously. I hate to be mean but when they say they are struggling I'm thinking like average income $70k, but when you make double that and struggle. PLEASE.
It almost doesn't matter how much you make unless you're really at the bottom of the scale.

The other day, a coworker got pulled over because her registration was expired. She used her lunch hour to go to DMV and renew it. But when she got there (after standing in line) she learned that it was $80. She said she only has $50 in her bank account so she couldn't do it. She was waiting for payday so she would have enough money to renew and just hoped she wouldn't get stopped again.

I work with this woman. I hear her talking about things she's done and places she's gone. I see what she eats for lunch and dinner. I assure you it is her own fault that she couldn't manage to pay an $80 bill (that we all have to pay once a year).
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* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
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  #32 (permalink)  
Old 09-14-2017, 05:56 PM
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Still remember hearing my ward clerk talking to her sister and husband who came up to visit her at work one day. They were telling her that they had spend $800 on Christmas presents. This was '89-90. So how much is that worth these day? Just checked that was the same as $1500! Of all of us there at that point, I made more money than all of them. I have NEVER spent that much for Christmas! No wonder they were having money problems as they mentioned after talking about Christmas.

If you have nothing else to do with your money and all your bills are paid and you have a decent amount in savings, waste your money any way you want to. But then someone that has their financial life covered probably wouldn't want spend money recklessly anyhow.
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