Quote:
Originally Posted by MoneyGuy
This may be a bit controversial,  but I disagree with the standard advice of everyone having three to six months in an emergency fund. I, for example, have no emergency fund. Many of my clients don't, often on my advice. Years ago I ran into a lady I used to work with. She asked me if she should have an emergency fund. She and her hubby had $25K in a fund for 25 years, untouched. I calculated for her that they had lost tens of thousands of dollars in lost gains while the emergency fund spun its wheels. She and her hubby both had very secure jobs. Whether you have an EF and how much it should be are a factor of several factors, such as job security, personal financial situation, if you have a working spouse (also her job situation) and such. |
Sounds like the same advice Peter Lynch gives.
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