Comments on: Starting An Opportunity Fund

By: Kyle

Kyle — Wed, 07 Oct 2009 17:25:28 +0000

I agree…there is definitely something tangible about assigning a purpose to money. Similar to the Napolean Hill concept in “Think and Grow Rich” I would certainly recommend this from an investing standpoint too…not just as a counsumer.

By: Brian Lee

Brian Lee — Thu, 01 Oct 2009 14:49:43 +0000

Something happens psychologically when you separate your money and assign a purpose for it. Some people argue that all money is equal, but I have noticed that if your money doesn’t have a purpose, it tends to disappear.

By: Steven@HundredGoals.com

Steven@HundredGoals.com — Thu, 24 Sep 2009 22:26:28 +0000

Reminds me of the article I wrote titled: Importance of an Opportunity Fund:

http://hundredgoals.com/2009/03/19/importance-of-an-opportunity-fund/

Good article!

By: Foxie@CarsxGirl

Foxie@CarsxGirl — Thu, 24 Sep 2009 02:57:09 +0000

Kinda sounds like that Sunny Day Fund you wrote about a long time back, which is what I call mine. It’s basically the same thing — a tiny savings account separate from everything else that has no definite purpose… Just to exist until it’s needed.

My only issue is figuring out when a good time to use it is. I can’t tell what good opportunities are (sales on designer duds with big discounts?) or when I should just wait. (In case something better comes along.)

Usually, I use the fund to stash away money for something fun. I just used it in the past couple of weeks to hold my money until I was able to get a new tattoo, then made the transfer. Makes sure I don’t spend any of it and whatever’s left goes back in the fund.

By: Bargain Babe

Bargain Babe — Wed, 23 Sep 2009 21:29:10 +0000

FD, I love the idea of an opportunity fund. There are always things coming up that are big enough to make it difficult to squeeze them into my monthly budget but really great deals. It seems a shame to pass on some of the travel deals, in particular.

I’ve actually heard of this type of fund before, except the person who told me about it called it an “Oh vey!” fund. As in, “oh vey!, my dentist says i need a crown.” It was to cover mini-emergencies.

The difference is that your opportunity fund is meant to cover positive expenditures. I may well start an opportunity fund myself!

By: Frugal Dad

Frugal Dad — Wed, 23 Sep 2009 20:54:49 +0000

@Lauren: Yes, I like the idea of fully funding an emergency fund before starting to save for “opportunities.” The Opportunity Fund comes at the tail-end of a financial turnaround, baby steps plan, etc. At least, it should in my opinion.

By: Lauren

Lauren — Wed, 23 Sep 2009 19:58:08 +0000

We also use ING and I love the ease of looking at where we stand at a glance. I have recently also been thinking about starting an opportunity fund, but our emergency fund isn’t fully funded yet. Do you think it is important that we have our emergency fund fully funded before we start putting money in our opportunity fund?

By: Financial Samurai

Financial Samurai — Wed, 23 Sep 2009 19:57:54 +0000

Good stuff Frugal Dad. I just started a $1million opportunity fund myself, haha. It’s being tracked online at FS. The opportunity of reaching that goal is to be free!

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Wed, 23 Sep 2009 16:17:34 +0000

Just the name “Opportunity Fund”, sounds like something you’d WANT to put money into! That’s half the battle of savings won right in the name.

By: Frugal Dad

Frugal Dad — Wed, 23 Sep 2009 15:28:59 +0000

@Jennifer: That’s a great use of the opportunity fund – kind of what I was thinking with stockpiling items when on sale. But buying a side of beef (or more) and freezing for later use would be a great way to lower your grocery budget throughout the year.

@All: Several of you have mentioned using an “Opportunity Fund” for making investments. We are often reminded by advisors to “keep some cash on the sidelines,” and this fund is really just an extension of that thinking in that it can be used for everyday opportunities, not just in the market.