How do you build your emergency fund?
Its taken awhile but have finally attained my goal of building an emergency fund of a years worth of expenses for us. I’ve read about many ways to do so but The Digerati Life gives a pretty good summary of 5 different ways. #3 would be something we belong to currently and #4 something to move towards. I sincerely hope none of my friends are using #1 since 24% per annum on late charges is really like gambling your money away.
#3 Using a standalone cash account separate from your investment portfolio: the traditional Emergency Fund
Link to 5 Different Ways To Build An Emergency Fund » Silicon Valley Blog About Money
by michael
Yup, agreed on your point about not having enough money to put into all the funds. Definitely a struggle to balance saving vs investments while taking into mind the current high flying property boom and everyone’s craze in China stocks.
Interesting. I’m also building my emergency fund as well. Not to mention my retirement fund and others. There never seems have enough money to put all those into funds.
Maybe this will be a good read for me.