How much liquid cash should you have ?

[Gailete]

6 months in a hospital can wreck just about anyone's finances, between co-pays, etc. for the medical costs and then the none medical. The cost of a spouse visiting daily - have you seen what it costs to park at a hospital these days?, Small ones that need a babysitter, older ones in college that is sucking money out of the family finances, less home cooking and more grabbing food on the way to or from the hospital, all these kinds of costs add up fast and drain you dry and yes, most folks don't even begin to have 6 months expenses tucked away so a lot of these expenses get dropped onto cc.

After working in a hospital office that dealt with insurance companies and what they would pay, etc. I changed the mandatory medical amount on our car insurance from the mandatory $10K to the top $100K as I realized that the $10K could be eaten up just in the getting to the hospital and the ER. Doesn't even count a couple of weeks in hospital. Up to the point of Obamacare, my husband had no insurance so I figured at least if he was in a car wreck, that would hopefully be one worry off my back.

[Danielvalerio506]

6 months in a hospital can wreck just about anyone's finances, between co-pays, etc. for the medical costs and then the none medical. The cost of a spouse visiting daily - have you seen what it costs to park at a hospital these days?, Small ones that need a babysitter, older ones in college that is sucking money out of the family finances, less home cooking and more grabbing food on the way to or from the hospital, all these kinds of costs add up fast and drain you dry and yes, most folks don't even begin to have 6 months expenses tucked away so a lot of these expenses get dropped onto cc.

After working in a hospital office that dealt with insurance companies and what they would pay, etc. I changed the mandatory medical amount on our car insurance from the mandatory $10K to the top $100K as I realized that the $10K could be eaten up just in the getting to the hospital and the ER. Doesn't even count a couple of weeks in hospital. Up to the point of Obamacare, my husband had no insurance so I figured at least if he was in a car wreck, that would hopefully be one worry off my back.

Yeah I agree! All those costs start adding up until you get completely broke.
It is sad to see that a situation like that can happen to anyone at any time but still people live their lives without thinking about this and without having not a single month expenses saved in some form of investment or simply in CDs for example.

[sdol1]

I am self-employed and because of the nature of my business I have some really good months and some OK months. I always have at least 3 months of expenses saved, but on the good months I put a bit extra away so I am up to about 6 months now.

[Gailete]

I am self-employed and because of the nature of my business I have some really good months and some OK months. I always have at least 3 months of expenses saved, but on the good months I put a bit extra away so I am up to about 6 months now.

Other than my disability check, we are self-employed as well. When we have a big payday from hubbies work, I stash a percentage for taxes and then pay ahead on outstanding bills. I can't see stashing 6-12 months of expenses away when it could be used to pay off much higher interest loans/credit cards. That being said. We do have enough in a stock fund account to meet about 3 months worth of expenses combined with my SS. Since the thought of taking a dime out of that account, I will stand on my head to find other money instead of tapping that account if needed.

[Nutria]

The cost of a spouse visiting daily - have you seen what it costs to park at a hospital these days?

Zero where I live, and when I went out of town to visit my mother.

[Nutria]

We don't have an Emergency Fund.

That's because we "give every dollar a job", and thus have funds like:

1. Uncategorized savings
2. Christmas Club
3. Medical
4. DW college tuition
5. Vacation
6. Car
7. Home/appliance repair
8. Quick-needs travel
9. Job Loss

If I lost my job, then we'd first drain, naturally, the Job Loss fund, and then poach from the other funds. We could easily live 6 months like that.

Ditto for medical emergency, broken appliance, etc. There's $1000 extra in the Auto Insurance fund (used to accumulate semi-annual payments) to pay the deductible.

The benefit of this for impulsive spenders like us is that it is a lot more tempting to raid one huge amorphous pile of cash for a 60" TV than it is to raid the Car fund, or even the Home/appliance repair fund.

[disneysteve]

We don't have an Emergency Fund.

That's because we "give every dollar a job", and thus have funds like:

1. Uncategorized savings
2. Christmas Club
3. Medical
4. DW college tuition
5. Vacation
6. Car
7. Home/appliance repair
8. Quick-needs travel
9. Job Loss

You have an emergency fund. You just don't call it that.

[Nutria]

You have an emergency fund. You just don't call it that.

I would dispute that, since more than half of those funds will at some point be spent on non-emergency items.

[Gailete]

Zero where I live, and when I went out of town to visit my mother.

I had to go get an MRI at one of local hospitals last week, and it is the same with both. I was only there a little over an hour and had to pay $3 for parking. It starts out at $2 and works its way up. The other hospital has a parking garage as well plus metered parking and the meters take about 25 cents for 15-20 minutes, so you really must feed them or the or get a ticket. Personally, I think that those coming for emergency treatment and or hospital admission, having to worry about that one more thing of paying for parking. You are fortunate. When I was working at each hospital individually at a time, I learned where I could park for free and still not have a walk to my car at 11:30 PM. They have done too much construction now and I don't know my way around anymore. So yep, in my town having to go to the hospital or visiting a family member admitted there we must pay for parking. Even the vending machines they gouge with higher than normal prices.

[disneysteve]

I would dispute that, since more than half of those funds will at some point be spent on non-emergency items.

I think we're arguing semantics here.

To me, the number one purpose of my emergency fund is a job loss, so you've got that covered with #9. Medical expenses are probably second to me so #3 on your list. Car and home repairs come next, so #6 and #7 for you.

What many people call their emergency fund is one account (or group of accounts) intended to cover several of the things on your list. You just choose to itemize it, which is perfectly fine. Whatever works and keeps you on track to be prepared for future stuff is the way to go.

[Nutria]

I think we're arguing semantics here.

To me, the number one purpose of my emergency fund is a job loss, so you've got that covered with #9. Medical expenses are probably second to me so #3 on your list. Car and home repairs come next, so #6 and #7 for you.

What many people call their emergency fund is one account (or group of accounts) intended to cover several of the things on your list. You just choose to itemize it, which is perfectly fine. Whatever works and keeps you on track to be prepared for future stuff is the way to go.

I'm definitely prepared for emergencies, and yes it's semantics. But I think that's important since they shape how we communicate -- and thus think.

[disneysteve]

I'm definitely prepared for emergencies, and yes it's semantics. But I think that's important since they shape how we communicate -- and thus think.

Fair point, especially because many things people say were "emergencies" really weren't. For example, someone will say they "had to" rack up credit card debt because their car needed new tires. Sorry, that's not an emergency. That is a predictable recurring maintenance cost that comes with owning a car.

[Gailete]

Fair point, especially because many things people say were "emergencies" really weren't. For example, someone will say they "had to" rack up credit card debt because their car needed new tires. Sorry, that's not an emergency. That is a predictable recurring maintenance cost that comes with owning a car.

As is Christmas! Birthdays, and all sorts of things. Even though I have been poor, I never or rarely have the 'emergencies' that others seem to have. They have never learned the motto of "use it up, wear it out, make it do or do without". I have known one woman, first as a child that I knew and as she grew up, got married and had kids and while I don't much contact with her these days, everything was an emergency or a problem. Every 'emergenicy' was a chance to get attention pulled to her. Everyone knew about what was going on with her and her family as she told everyone so she could get sympathy and attention. Even though she wasn't blond, she was the perfect definition of a dumb blond totally ditzy. Everything to her was an emergency and they were broke all the time.

[ronb]

Give your cash to me.

[LivingAlmostLarge]

A lot of people are broke all the time. I hear it even from friends. I'm like what the heck did you spend money on during this pay period. And then it comes out. We bought a nintendo switch. New ipads. Etc, etc, etc. You can't be broke making $100k+. Seriously. I hate to be mean but when they say they are struggling I'm thinking like average income $70k, but when you make double that and struggle. PLEASE.