Comments on: It’s An Emergency!

By: Issac Maez

Issac Maez — Thu, 11 Feb 2010 04:50:27 +0000

Wonderful Web site!

By: Marie

Marie — Fri, 15 May 2009 13:42:06 +0000

Ben:
“low minimum repayments of just $60 or 3% of your balance, whichever is greater “. I assume they want more than $60/year. Correct me if I am wrong. (I never used it.)

By: Ben

Ben — Fri, 15 May 2009 12:23:29 +0000

Big fan of the EF – I’ve got about 12 months expenses in a savings account.

Marie, the cost you’ve calculated for the LOC is actually annual, not monthly. Interest rates are annual, not monthly, so the cost is about 1/12 of that calculated. Not that I’m a fan of LOCs…

By: This and That: The Age of Frugality | Income Trust | Personal Finance | Real Estate SEO

Fri, 15 May 2009 12:22:18 +0000

[...] Unsurprisingly, Gail has strong opinions on the need for an emergency fund and whether a line of credit qualifies as…. [...]

By: This and That: The Age of Frugality | Canadian Capitalist

This and That: The Age of Frugality | Canadian Capitalist — Fri, 15 May 2009 11:27:36 +0000

[...] Unsurprisingly, Gail has strong opinions on the need for an emergency fund and whether a line of credit qualifies as…. [...]

By: Melaniesd

Melaniesd — Sat, 09 May 2009 21:53:30 +0000

6 months of emergency funds does seems SO FAR away.
I also have a PAC to an ING act. I like that I can’t access without thinking about it.
I like the idea of baby steps. It just seems that as soon as I have a chance to save some extra, those needs come up – vet bills etc.

My dog is 12 and likely won’t be with me too much longer. I know now that I will not adopt a new dog until I have the money set aside for the initial costs (spaying/needles/licences etc) and atleast $500 in a “pet” account for unexpected costs. We have another dog currently, and I plan to build up an emergency vet fund for him too.

There are so many possible expenses that sometimes it’s hard to think of them all. I know I need to start to budget more for quarterly car servicing, ordering wood for heat, and filling the oil tank too.

Marie: I think the suggestion to save what your minimum pymt *would* be is wonderful! It’s very realistic thinking!

Alexandra: I’m glad to hear your diagnosis looks good. *sending you healing vibes and well wishes*

Agatha: Good luck with the job hunt. I hope you find something fabulous!

Thanks for keeping me on my toes Gail. You always give great “foof for thought”.

By: Roxanne

Roxanne — Sat, 09 May 2009 20:17:54 +0000

OMG! I just realized that I’m one of those people who have “emergencies” when the money in my savings account starts to get high.

I defer extra cash into my savings figuring it would be used later for car repairs, vacations, unemployment, etc., but it always seems to get frittered away throughout the year. I just set up “savings goals” in my accounting software to separate the money, so I don’t spend my emergency money on vacations and the like. I’m gonna try Elizabeth’s 40/30/10/10/10 system (previous post). It makes alot of sense.

By: Catherine

Catherine — Fri, 08 May 2009 21:42:59 +0000

An emergency fund is a good safety net and gives peace of mind. Our furbaby had surgery today (found out at 9, surgery by 11) and it’s nice to know the $$ is there. However, I put it on our credit card and it will be paid in full at the end of this month – with no interest. It is the only thing on it. The emergency still fund thrives…..and a credit card is useful as long as it is paid in full each month and used wisely.

By: Marie

Marie — Fri, 08 May 2009 15:53:25 +0000

The TFSA can hold cash, GICs, T-bills, mutual funds, stocks, …
Cash has lower interest, is safe, and readily accessible.
GIC has a slightly higher return, is safe, but not necessarily readily accessible.
MF: money market (lowest risk), bond (small risk), equity (higher risk). Accessibility without penalty depends on each fund.

By: Jane

Jane — Fri, 08 May 2009 15:04:20 +0000

Good point on the bank not refinancing if our incomes were gone – I don’t really think about it as moving backwards if I had to refinance because we have been paying so much extra on our mortgage (money that would have gone into an EF) we would just be back to ‘normal’ if we had an emergency. But if the bank refused to refi though obviously that wouldn’t work.

I’ll have to think about it a little more. My business has about a years worth of retained earnings in a brokerage account but they aren’t exactly in low-risk/EF markets. The TFSA is pretty low-risk but again not cash.

By: Yvonne

Yvonne — Fri, 08 May 2009 11:31:46 +0000

I too keep my EF, as one lump sum…i.e. job loss, major repairs, new vehicle etc….I use a money market mutual fund…( I still like mutual funds lol)…since having a job, a roof over our head and reliable transportation are all very very important I consider them all part and parcel of the EF…so far it’s working well…I have planned spending for the little extras or the fun stuff and retirement savings for retirement…there is also resp for the youngest son’s education and another long term savings for our eldest son’s care (he is severly autistic and will always need care)…so far so good:)

By: Christine

Christine — Fri, 08 May 2009 10:38:59 +0000

WOW! awesome post Gail. Reading people’s comments and stories about emergency funds has been inspirational for me. Due to my HR rep quoting me the wrong amount for my pension buyback after returning from mat leave, I got stuck with a $1800 suprise. I guess my employer thinks “I’m richer then I think” b/c they debited my pay for that amt without telling me. If I didn’t have savings I’d be in a world of hurt. After reading some of other people’s experiences I immediately transferred money back to my emergency fund to start to build it back up.

By: Stephanie H.

Stephanie H. — Fri, 08 May 2009 01:00:34 +0000

An emergency fund should be essentially liquid. In my personal view it should only be used if you lose your job or something similar. By the end of the summer I should have 6 months of essential spending. I long ago looked at my budget to see what I could cut from my budget if I were to lose my job. I have a seperate account for monthly housing expenses and I am getting ready to open an account for repair, maintenance and improvements. I also have a car account. There are many things I would love to have done on my house but my rule is that I must be able to pay cash. I actually look at all of my accounts regularly because I love to watch them grow. Good luck to those starting the journey every dollar makes a difference.

By: JamsWife

JamsWife — Fri, 08 May 2009 00:04:29 +0000

Setting up automatic savings into ING is a great way to build your emergency fund. I every thought we would be able to “save” as much as we do, but with it coming out weekly, you don’t even notice.

By: Stacey

Stacey — Thu, 07 May 2009 20:34:23 +0000

I am single with a single income, and have all the living expenses if I wasn’t on my own… and about two years ago, I decided I had to start *some* type of savings. I signed up with ING Direct, and every bi-weekly pay, I automatically have a small set amount deposited into the ING account. I don’t see it when doing my own online banking. I don’t go look at it. I don’t think about it. It’s as if I don’t have that money anymore, and it’s no longer a temptation to spend. Also, twice a year, I end up with an extra pay in the month, so I will then log onto the ING website, and do a one-time deposite of a higher percentage of that pay. Easy come, easy squirrel away.