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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Hypothetical Budget Question Date:  10/10/2013  9:12 PM
Author:  xtn Number:  307316 of 312858

You must evaluate how much emergency fund you actually have versus how much time you think you might be without income. Then you must adjust that evaluation with the knowledge that you might be wrong about how long it will be before you get income.

Personally, when I was fired, I cut everything to the bare minimum the very next day. And I could have lived for a couple of years without lowering my standard of living because of the size of my savings. But I wanted to be cautious about my expectations of work, plus I didn't want to waste away that pile of savings any more than I had to. If you've got the responsibility of a family then be even more conservative than that. Better a low standard of living for a while than NO standard of living later.

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