I've come to like the notion of our e-fund as a component of our Emergency Plans. It is the cash reserves which sees us through the various tragedies we can forsee in our Plans. These Plans include actions we would take, insurance coverage (including unemployment), and family and friend assistance. I'm thinking I might start putting these plans on paper for our reference. Situations to Plan for include:
Either of out deaths
Major car accident (including medical)
Major medical emergency
Unemployment
Natural disaster (fire or earthquake)
Family emergency (parents, siblings, etc)
Any others?
E-Fund as part of Emergency Plans
February 21st, 2011 at 07:22 am
February 21st, 2011 at 03:35 pm 1298302525
Lawsuit?
Unexpected, uninsured car loss? This happened to us when our engine blew up and we were not ready in our car savings to replace it. General emergency fund to the rescue!
February 21st, 2011 at 05:25 pm 1298309114
insurance: for auto accidents, lawsuits, disability, death, etc.
E-fund: natural disaster, unemployment, completely unforeseen and uninsured "catastrophic" events
savings: medical deductible (known amount), car replacements, car repairs, insurance deductibles (known), home maintenance, dental, orthodontia, smaller unforeseen bills. (Most of this is rather predictable).