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Subject:  Hypothetical Budget Question Date:  10/4/2013  10:35 PM
Author:  yddeyma Number:  307287 of 312719

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.
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