Comments on: The Tri-Level Emergency Fund

By: Lee

Lee — Fri, 11 Sep 2009 17:41:47 +0000

Superb advice there. Emergency funds are a must, but splitting them up and keeping a bit of it in true liquid cash is a great idea.

By: Meaghan

Meaghan — Sun, 26 Jul 2009 03:46:01 +0000

I like how you break it down. You make an important strategy sound so logical and simple. Thanks for all the tips…I always look forward to your posts!!

By: anonymous

anonymous — Wed, 22 Jul 2009 16:24:05 +0000

There are rumors on Wall St. about a banking holiday around the Sept timeframe. This has been done before. Though the propaganda off of CNBC and “stellar” banking profits, the opposite is true from all my research. Just check into the major banks plays in the casino/derivatives markets. The removal of mark-to-market rule made the banks actually valuate the crap assets for what they were really worth, now afterwards the same crap can be valued at 100% at the discretion of the bank. So this is where all these profits are coming from, trickery and the famous papershuffle. The 0.25% or 2.25%(a riskier bank) savings rate isnt the worth the risk.
Anonymous

By: Kelly

Kelly — Tue, 21 Jul 2009 03:15:42 +0000

Excellent advice.
I just wrote a post about have a “budget busters” account we keep at our credit union so it’s easy to get to, and the EF further away at ING, but we do not keep cash in the house.

I am a spender when it comes to cash, but I like the idea of having it on hand in a safe place for emergencies.

We once had a power outage in the summertime that lasted 5 days! Thankfully I was staying with family, but it sure made my husband’s life more difficult!

By: Generation Y Investor

Generation Y Investor — Tue, 21 Jul 2009 00:43:55 +0000

I really liked this post… it was a very unique and interesting take on the good old e-fund.

-Gen Y Investor

By: thisisbeth

thisisbeth — Mon, 20 Jul 2009 23:20:27 +0000

I have parts two and three in place, but am notoriously bad about keeping cash on-hand. I need to remedy that situation.

My local bank happened a bit accidentally, but it presently hold a mortgage payment plus a little extra. This way, if something happens somewhere in my financial system, I have at least one mortgage payment ready to be paid.

By: Dave

Dave — Mon, 20 Jul 2009 19:57:23 +0000

For keeping some cash in the house, try giving a check to a plumber at 3AM Sunday morning, they want cash because thats a 30% raise, cash goes in the pocket, not on the books.

By: Curt

Curt — Mon, 20 Jul 2009 19:51:12 +0000

Excellent idea. I have been doing this for years, just didn’t have a name for it.

By: AJ

AJ — Mon, 20 Jul 2009 19:39:22 +0000

Great post! I will have to follow this.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Mon, 20 Jul 2009 18:54:03 +0000

I’ve never seen or heard of the emergency fund being split up this way, but I was thinking another advantage is the fact of three separate accounts making it more difficult should you weaken and decide to drain a fund on a non-emergency. Since you’ll have two others set up, you won’t have to start over again.

It’s interesting that the idea of having cash at home is resurfacing, as though it’s almost an exotic idea, but it’s really a return to traditional money management. Up until about the early 1980s, when millions of people began moving their last dollars into the stock market, having cash at home was quite common. Even young people did it, not just depression babies.