I know the typical advice for emergency funds is 3-6 months of expenses; however, I’m interested in diving one level deeper and gathering community strategies - as in, what qualifies as an emergency and how might it be funded.
*the intent is to responsibly maximize mid-long term investments by rightsizing our e-fund.
For example, in the event of a lay-off - my company has a written policy. At my level I’d be offered 1 year base salary plus cobra. In the event of a medical emergency, I carry insurance plus a 5k HSA balance. If I consider other minor events like car trouble, plumbing emergency, etc., that’s a few thousand in cash or credit availability.
Other major events include house fire, major flood, earthquake - all of which are insured but perhaps need a month or two of expenses to cover any gap?
What are your thoughts? What am I missing?
Submitted December 14, 2018 at 10:31AM by braveheartandsoul https://ift.tt/2Ce2SDR
