In my last
post about emergency funds, I covered a number of good reasons why I prefer to use a line of credit for my emergency fund instead of having cash.
While some risk is beneficial for investing if you can tolerate it, the question is
specifically about an emergency fund, where it is important to minimize risk as much as possible.
There is a lot of different
advice about emergency funds (check here) ranging from x months salary in savings to detailed planning for each of your expenses.
Heath urged them to consolidate their debt, forget
about an emergency fund for now and put the breaks on over-saving in these expense - laden years with such a young family.
From there, I'd recommend my article
about emergency funding like a pro, but keep in mind this stuff is different for everyone, so your situation may call for a larger emergency fund.
so my question is
less about emergency fund balances as i'm pretty confident they'll grow steadily and more about, I guess, and please correct me if I'm wrote, whether or not the 6.9 - 7.9 % average returns for ROTH IRA mutual funds is a dependable enough guess that it would imply I should put the $ 5500 there instead of toward the 5.5 % mortgage (which I guess is actually lowered when you consider tax writeoff).
Read about saving an emergency fund here: What You Need To Know About Emergency Funds
The one
about an emergency fund is crucial.
Nearly everyone who has suddenly and unexpectedly gotten into a serious financial challenge, and many of those who have been obliged to file for bankruptcy, believed this «good news»
about emergency funds.
I think the only thing I would add is
about the emergency fund.
Everything You Need to Know
About Emergency Funds Michelle from Making Sense of Cents answers all the burning questions about emergency funds — for those times when «you need money fast».