Is My Emergency Fund Too Big?

Is My Emergency Fund Too Big?

Isn't personal finance exciting? I know, I know, it really is, and sometimes I can hardly contain myself. On Friday, I wrote a fun little piece called "Question Of The Week: Should I Pay Down My Student Loans ?", and I got some great responses and answers from my awesome readers. As I was responding to the various comments and suggestion, I saw a common thread weave throughout, which was to obviously "PAY DOWN THE FLIPPIN' LOAN!" The other one was a bit more interesting, and I'd like to explore it a bit further. Why Do I Have So Much Cash Saved Up? I got a few responses from readers asking … [Read more...]

Emergency Fund

I've talked a bit about having a good emergency fund, so it's probably about time I define what an emergency fund is, and maybe more importantly, WHAT IT IS NOT. There are many people who have already defined this, but I want to get a little more detailed and answer the questions; Why, How Much, Where, and For What. Why? Why should you have a pile of cash that is used exclusively for emergencies? It's a fair question, because after all, if money is just sitting there, it's not out working hard for you. And though I believe all money should have a name so you can use it for something … [Read more...]