Comments on: How To Conduct A Financial Fire Drill

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Mon, 10 Aug 2009 05:52:21 +0000

Solid advice. People need to think and prepare for the worst and hope for the best.

By: Joshua @ Accountable Living

Joshua @ Accountable Living — Tue, 04 Aug 2009 05:12:16 +0000

I would throw one additional thought into the mix here: Look at what expenses you would immediately cut / reduce if the income were to drop. For example, are you able to terminate the cable TV service or are you under a long-term contract? What about gym memberships, etc? Knowing what to do here can help stretch the dollars available in the emergency fund.

By: Craig

Craig — Mon, 03 Aug 2009 19:52:38 +0000

@frugaldad With a new roommate moving in at the end of the summer, feel like that will be a good time to figure out what I can cut in the apartment and not re-subscribe for.

By: Frugal Dad

Frugal Dad — Mon, 03 Aug 2009 19:47:07 +0000

@Craig: I suggested running through your list of “necessary expenses” and potential items you could cut in an emergency about once a quarter. Any more frequently might seem obsessive, and any less would leave you without an up-to-date list.

By: Craig

Craig — Mon, 03 Aug 2009 18:45:51 +0000

How often do you recommend this?

By: Frugal Dad

Frugal Dad — Mon, 03 Aug 2009 18:31:14 +0000

@RB: Like most things, it depends. I would share things with teens and older children, but keep things light with younger kids. I don’t like the idea of subjecting small kids to worries about money – plenty of time for them to worry about it later!

By: alex

alex — Mon, 03 Aug 2009 18:07:39 +0000

Saving for 6 months of expenditures seems like quite the goal. I always heard 3, but this recession has certainly outlasted that plan. Six it is!

By: RB @ Richby30RetireBy40

RB @ Richby30RetireBy40 — Mon, 03 Aug 2009 17:58:17 +0000

Thanks for the post. What if you don’t want your kids to know you’re in dire financial straights? Is it ok to keep up a facade and just be stricter on them?
Thnx, RB

By: Frugal Dad

Frugal Dad — Mon, 03 Aug 2009 17:07:23 +0000

@Dee: Great question! Ask your employer for a benefits plan document. Most plan documents list both the employer’s portion of health care premiums and the employee-paid portion. An average family plan might list $650 as paid by the employer, and $350 covered by the employee. If you lost your job, you’d be responsbible for both sides of the premium ($1000), minus any reductions under current legislation to reduce the cost of COBRA. I certainly wouldn’t count on any such reductions when planning your emergency fund.

By: Pro2Pro Network

Pro2Pro Network — Mon, 03 Aug 2009 17:06:18 +0000

I found this post to be very helpful and informative. I will be discussing this with family and friends, becuase in this economy no one can be over-prepared. Thanks.