Comments on: My emergency fund (transfer) in action http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html Financial independence, frugality, self-sufficiency, ecology, capitalism, and voluntary simplicity Fri, 21 Nov 2008 19:15:30 +0000 http://wordpress.org/?v=2.6.3 By: Philip Brewer http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-270 Philip Brewer Wed, 30 Jan 2008 14:17:26 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-270 It doesn't really matter whether you have a separate "emergency fund" or you just make sure the cash portion of your overall asset allocation is ample. I do worry a bit, though, about relying on a credit card for emergency liquidity. A credit card (or a HELOC, which some people use) works fine when everything's going along okay in the financial system. But when the financial system is stressed, banks are prone to do things like reducing credit limits, canceling lines of credit, or just getting out of the credit card business. And it's all too likely to happen right at the moment when you needed to access that money. It doesn’t really matter whether you have a separate “emergency fund” or you just make sure the cash portion of your overall asset allocation is ample. I do worry a bit, though, about relying on a credit card for emergency liquidity.

A credit card (or a HELOC, which some people use) works fine when everything’s going along okay in the financial system. But when the financial system is stressed, banks are prone to do things like reducing credit limits, canceling lines of credit, or just getting out of the credit card business. And it’s all too likely to happen right at the moment when you needed to access that money.

]]> By: Jacob http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-266 Jacob Wed, 30 Jan 2008 00:39:29 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-266 @ moneymonk - the cash balance is part of my asset allocation. My beef is with the idea of creating a designated emergency fund and having money specifically reserved for emergencies. @ moneymonk - the cash balance is part of my asset allocation. My beef is with the idea of creating a designated emergency fund and having money specifically reserved for emergencies.

]]> By: chef http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-264 chef Tue, 29 Jan 2008 18:41:57 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-264 ING Checking also offers instant transfers from savings (higher interest) to checking (accessibility) I love those guys ING Checking also offers instant transfers from savings (higher interest) to checking (accessibility)

I love those guys

]]> By: moneymonk http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-262 moneymonk Tue, 29 Jan 2008 18:13:38 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-262 So technically you DO have an emrgency fund. You may just call it cash reserves. Same thing you had the cash to clear the cc account balance. As long as you have the cash for sudden expenses, who cares about the verbage. So technically you DO have an emrgency fund. You may just call it cash reserves. Same thing you had the cash to clear the cc account balance.

As long as you have the cash for sudden expenses, who cares about the verbage.

]]> By: lulugal11 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-260 lulugal11 Tue, 29 Jan 2008 14:23:07 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-260 @ Jacob. ING's Electric Orange checking account has a debit card so you can easily access the money so liquidity should not be a problem. They also have a network of FREE ATMs that you can access so you do not even have to worry about the ATM fees. @ Jacob.
ING’s Electric Orange checking account has a debit card so you can easily access the money so liquidity should not be a problem.

They also have a network of FREE ATMs that you can access so you do not even have to worry about the ATM fees.

]]> By: mjmcinto http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-258 mjmcinto Tue, 29 Jan 2008 14:00:54 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-258 That's pretty much my wife's and mine emergency policy. I just put it on my CC, and then transfer the money needed to cover the expense from our emigrant direct account. Though I've always considered my savings account my emergency fund, and not my CC. Then again I also charge just about everything on my credit card since I love cash back (I also pay the full balance every month) That’s pretty much my wife’s and mine emergency policy. I just put it on my CC, and then transfer the money needed to cover the expense from our emigrant direct account. Though I’ve always considered my savings account my emergency fund, and not my CC. Then again I also charge just about everything on my credit card since I love cash back (I also pay the full balance every month)

]]> By: Jacob http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-257 Jacob Tue, 29 Jan 2008 05:09:00 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-257 That's not a good place to keep liquidity though. It usually takes a few days for the money to be accessible and that can be a problem (I've had exactly that problem. That was no fun.). I know my broker offers a debit card so that would be another option. I prefer the credit card though since it offers some consumer protection as well as 20 days of float. That’s not a good place to keep liquidity though. It usually takes a few days for the money to be accessible and that can be a problem (I’ve had exactly that problem. That was no fun.). I know my broker offers a debit card so that would be another option. I prefer the credit card though since it offers some consumer protection as well as 20 days of float.

]]> By: SJean http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-256 SJean Tue, 29 Jan 2008 04:37:25 +0000 http://earlyretirementextreme.com/2008/01/my-emergency-fund-transfer-in-action.html#comment-256 I think that having a bunch of cash in ING direct pretty much constitutes an emergency fund. Most people, when they say efund, are talking about money in a high yield savings or stable value brokerage account. I think that having a bunch of cash in ING direct pretty much constitutes an emergency fund. Most people, when they say efund, are talking about money in a high yield savings or stable value brokerage account.

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