Comments on: Build an Emergency Fund to Avoid Financial Crisis

By: Vinod Kumar

Vinod Kumar — Sat, 25 Jul 2009 08:56:22 +0000

minimum 5% of total earning should be reserved by every body in this world in above mentioned fund .Dear Sir I have like your blog and add it in my subscription list

By: Charles Richey

Charles Richey — Tue, 16 Jun 2009 22:09:31 +0000

Of course having more money saved is better, but in this economic climate that may not be plausible. IF you are working and are meeting your bills, I think a six month worth is the minimum. Companies are still downsizing and things probably won’t improve until next year at the earliest.

By: Ricky

Ricky — Tue, 16 Jun 2009 05:49:04 +0000

There is a great possibility of unexpected expenses for which you should have some money with you. Post is giving great detailed knowledge regarding emergency fund.

By: Pinyo

Pinyo — Thu, 11 Jun 2009 03:52:07 +0000

@ctreit – Good point about the size of emergency fund also depends on other factors. I’ll update my article to reflect your suggestion.

However, I have to disagree regarding your comment that it’s unrealistic to match your emergency fund to the unemployment rate when there’s a sudden rise. I agree that it’s not easy, but it’s still a good goal to shoot for if you can manage it. I understand that people who suddenly lose their job due to high unemployment wouldn’t be able to achieve this, but the baseline 3-6 months worth should already be there for them.

By: ctreit

ctreit — Thu, 11 Jun 2009 00:33:21 +0000

I think the size of the emergency fund depends on a bunch of things. For example, a single person does not need as much as married couples with children even if they have the same expenses. – I find it interesting to throw in the unemployment rate, but I also find it difficult to follow this rule realistically. When the unemployment rate shoots up as quickly as it has done recently, who can really boost the emergency fund as quickly to keep up? Especially when the economic environment gets tougher and bonuses, for example, are not being paid?

By: Mike from Cash Flow Moe

Mike from Cash Flow Moe — Wed, 10 Jun 2009 23:30:21 +0000

I keep my emergency fund in a rewards checking account. The account presently pays 4.00% with no minimums. There are a few requirements such as direct deposit, use of a debit card, etc., but most of these are easily attainable. Check the local banks in your area, I bet you’ll find a similar deal.

By: Miranda

Miranda — Wed, 10 Jun 2009 11:45:52 +0000

I’d never heard the “rule” about 1 month for every percentage in the unemployment rate. That’s a pretty interesting way to figure it. Looks like I have quite a bit of work to do!