Emergency fund

Whether one holds "too much" cash is often a question of hindsight.

I hold "too much" cash because I've seen a lot of volatility. I was holding even more "too much" cash in March 2020.

Still regret not buying additional NE Seattle Real Estate in 2009 though. That is on the very short list of things Mrs. Husky says she was wrong about.

creepycoug said:

RaceBannon said:

I kept enough for 2 weeks to flatten the curve

As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness

Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice

Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.

PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess.

#mycreep. I've come full circle on you. No homo. NTTAWWT

Tequilla said:

That said, if you ever find yourself in a situation that requires dipping into the savings, your stress levels are already going to be high. Cutting expenses and living effectively bare bones can just add to the stress you're already feeling. Then add to it the stress that you're going to experience trying to go through the job search (which becomes more difficult and niche as you advance in your career), the interviews, and ultimately some rejection, and stress is going to be at a super high level. This is why planning comes into play and making sure that you have enough to cover a rainy day as comfortably as possible.

This is an exact situation that I went through in my career when I left a company due to downsizing after a divestiture with a decent sized severance package. I was expecting that the amount of time to find a new position would be relatively quick, took a month plus from the search to take a vacation and enjoy the summer, and then found that as I entered into the Holiday season, I was finding it really hard to find the right niche. The stress is very real and in the grand scheme of things I had a relatively low stress situation given my personal circumstance. But there's stress. There's doubt. There's pressure. So to the extent that you can eliminate any of that, my recommendation is to do so.

Excellent points you made @Tequilla in your full post.

I can’t think of a way to make this point without it coming off as a judgement, so I’m crossing my fingers that you’ll trust me that I’m highlighting this to make a point so as to (hopefully) flesh out our discussion.

Several of you have used the term “Fuck You Fund”. I had never heard that (shows how far I have to go I suppose) vs. Emergency Fund. I’m really thinking for any up-and-comers or the basement dwellers looking to get their financial lives back in order poasters we really should differentiate between the two.

I will never begrudge someone who has the means/resources to take their time recovering from a layoff or life change to take time off and to collect their thoughts etc...but if you’re able to do that, the funds you’re drawing upon aren’t true emergency funds. Maybe “Get My Shot Together” or “Beach Walk Perspective” fund.

Emergency funds in my opinion are keeping the basic needs taken care like rent, utilities, etc.

Again, not judging. I’ve experienced being able to take a breath after a layoff *and* being, “oh shit, I gotta find something, ANYTHING, right away”.


It’s annoying semantics, I know, but shouldn’t those two things be treated differently in financial planning?

pawz said:

The problem with relying on a HELOC for liquidity is the credit lines can be withdrawn - no warning, just gone.

It happened A LOT in the '08 downturn. Just gone.

It helps to have nearly a million in equity

Our current heloc limit brings us to less than 40% of appraised value, so I'm not worried. WF adjusted our heloc limit in 2009, but that heloc limit put us at 80% of appraised value pre-crisis