UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: yddeyma Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308484  
Subject: Hypothetical Budget Question Date: 10/4/2013 10:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have a question and thought this would be the best place to post since it is e-fund and budget related.

When something unforeseen happens and you dip into your emergency fund, how long do you continue before taking irreversible measures to fix your cash flow situation? I'm talking about losing a job or something similar where the future is unknown and you are slowly hemorrhaging money.

For example, to use the recent example of Gov't furloughs, were going to be out of work for an unkonwn period of time. Your in a situation where you don't know when you'll be generating income again or if you do it may not be at the same levels. How much of your e-fund do you burn through before you start taking little measures (canceling cable, clipping coupons) vs. big measures like pulling the kids out of daycare, selling the house, moving to an area with better job prospects, selling the 2nd car, taking out a loan from retirement funds, etc? I talking about the difference between making budget adjustments and major lifestyle changes.

As soon as you dip into your e-fund, would you start cutting your budget in little ways like canceling cable? And how long would you wait until you make those big lifestyle changes? Are there any rules of thumb?

Just curious. I know it would be depend a lot on the situation.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
TMFDeej's CAPS Blog

Name of the Game: Tax Avoidance
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement