Haven't blogged about money for awhile. I'm feeling the urge to purge, so here it goes.
I want to talk about the emergency fund. Gail recommends 6 months expenses or about 3 months salary - yes, thousands of dollars - in cold, hard cash, sitting in a bank account (or under a mattresss... no, don't do that in case the emergency is that your house burns down). A line of credit is not an emergency fund. I'm guessing if the amount of work you're doing is highly variable, or seasonal, or your industry is in a downturn, or whatever, you should be saving even more months' worth. It's also only part of a complete financial plan, including varying types of insurances depending on your situation. Pretty scary thought, and Halloween is still another month away.
How lucky am I? Ridiculously lucky. I've never experienced an actual emergency. I've never had to choose between bills and groceries. I've never been unable to pay to fix my car so that I can drive to work. I've never been too sick to work. All of these things have happened to people I know. Also, I don't even have any dependents, except for that one plant above the sink - oh no wait, my partner waters that one.
For the past few years, I have been steadily filing money away into my emergency fund, every single paycheque. Is it hard to see that money sitting there, when I could be using it to take me to magical, exotic locations? Barcelona, or Boston, or British Columbia? Or at the very least, Brandon? Or at the very very least, Bulk Barn? Or how about using it to pay off the mortgage faster, or finally get a damn dishwasher (trust me, there's a separate fund going for kitchen renos)? Of course it's hard. But it's definitely worth it for the peace of mind.
don't know what half the stuff is,
occasionally question the sanitation (trust the store, just not the public),
still love it
In light of it being Thanksgiving next week, I'm also ridiculously grateful for the careers that my husband and I have had thus far. Don't think for a second that I take it for granted, because I don't.