By: Mike Smith

Mike Smith — Thu, 25 Sep 2008 17:08:25 +0000

@Glossybird - You've done well to prepare for a difficult time. By
reaching the upper end of the recommended 3-6 months worth of
expenses, you are in a very strong position to get through this
challenge. You excellent credit is also a big plus. Best of luck to
you. Everyone else can learn from this example. No one expects to
lose their job, but it can happen at any time. Even if you feel
secure in your job, other unexpected expenses are always a
possibility. Preparing for such a time by building an emergency
fund is an excellent way to go.

By: Glossybird

Glossybird — Thu, 25 Sep 2008 15:37:07 +0000

For the past year, I have kept re-reading one of my financial
goals- to have $7500 set back for emergencies. By having it wrote
down on my Things To Do list, I was ever conscious of the goal and
what it would take to save that much. Thankfully I sold one of my
investment properties at full price and was able to set back $8000,
exactly one day before I was laid off as part of a mass workforce
reduction. I was able to negotiate an additional two weeks of pay
on my severance package, and, all combined, I now have five months
of savings to cover my $2500 a month expenses. I am grateful for
having my expenses in check, and for having Grade A credit. I hope
to ride out this horrible economic storm as painlessly as possible,
thanks to good advice like yours that I actually heeded several
months ago.

Comments on: Spend Your Emergency Fund Wisely

By: Mike Smith

By: Glossybird