The BEST Emergency Fund Setup Ever

Everybody talks about how to build an emergency fund, but I have designed the best emergency fund ever. That’s right, you need not read any more on this topic after you finish this post because my idea is PERFECT. Your welcome. I recently wrote about how I didn’t feel that an emergency fund was important when I was getting out of debt. That’s because I had enough positive cash flow each month to handle most emergencies, up to $2,000. Instead of setting aside cash, I planned to pay for unexpected expenses out of my paycheck. When you have an emergency fund it might help you for one month when you are in debt, but if you spend it you will just have to cut your debt payments the next month to build it up anyway, so what’s the point? But now that I’m out of debt and facing the prospect of a career change for next year, I think it’s important to save up six months of expenses in case of unemployment or underemployment. My plan is to save $10K By New Year’s Day. I came up with this number by following my Job Loss Emergency Plan (read it here … Read more