How are we doing?

Saving & investing, frugality & simple living. They're all part of the wealth equation.
Here's the place to discuss getting (and keeping!) your money.

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chasely
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Re: How are we doing?

Postby chasely » Tue Feb 26, 2013 7:39 am

Just one thing I'm posting here that I feel is very important, which I also posted in your other thread:

Your emergency fund should be for emergencies!!!

You said you've depleted about a third of your EF for a vacation and home improvement, those are not emergencies! As I see it even at 20k you still have about 6 months of expenses, which is pretty good. You sound like you want closer to nine months so build it back up to that amount.

However, you should open separate saving accounts for things like vacations and home improvements. Your EF should be out of sight, out of mind. Mine isn't even included in my Mint.com or any other tracking accounts because I don't want to think I have that money.

Tightwad
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Re: How are we doing?

Postby Tightwad » Tue Feb 26, 2013 9:44 am

chasely wrote:Just one thing I'm posting here that I feel is very important, which I also posted in your other thread:

Your emergency fund should be for emergencies!!!

You said you've depleted about a third of your EF for a vacation and home improvement, those are not emergencies! As I see it even at 20k you still have about 6 months of expenses, which is pretty good. You sound like you want closer to nine months so build it back up to that amount.

However, you should open separate saving accounts for things like vacations and home improvements. Your EF should be out of sight, out of mind. Mine isn't even included in my Mint.com or any other tracking accounts because I don't want to think I have that money.

Not necessarily. If someone has the self discipline to throw all of that money into one account & still manage it then so be it. If not, then separate it into different funds.

DaveInPgh
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Re: How are we doing?

Postby DaveInPgh » Tue Feb 26, 2013 9:54 am

Although I am definitely disciplined enough to manage money within one account, my wife is the main reason for the one account. She is not a fan of our money scattered across multiple accounts.

If it were solely up to me, I would take advantage of more of the bonus offers that I get in the mail to open new accounts.

chasely
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Re: How are we doing?

Postby chasely » Tue Feb 26, 2013 11:05 am

Tightwad wrote:Not necessarily. If someone has the self discipline to throw all of that money into one account & still manage it then so be it. If not, then separate it into different funds.


I guess at this point we're really just arguing over semantics. I agree with you that it can be fine to have that money piled together, but then don't say that you have a $30k emergency fund if you're willing to spend $10k on "wants".

I actually do this in some ways with my credit union. They offer high-interest checking on the first $X dollars in your account; so I never let me checking account go below $X unless it's in the case of an emergency, and keep the rest of my EF in a separate account.

In the OP's case it didn't really matter since they're doing well financially, but I imagine it could be a problem for someone with a smaller income/EF.

I think I may have over reacted, since the OP probably didn't need to hear my statement. But I think it was useful to get that point across for other people perusing the thread.

DaveInPgh
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Re: How are we doing?

Postby DaveInPgh » Tue Feb 26, 2013 1:24 pm

chasely, you make an excellent point.

Mingling the EF with other money is certainly not a good idea for everyone.

My advice to anyone that is just starting out and perusing this thread is start your own "how am I doing" thread. There are so many different circumstances and variables to consider, and starting a thread like this is a great way to learn about things that you never thought about before.

Every time I log on here, I hope to learn something new that will help me achieve my retirement goal.


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