No. of Recommendations: 3
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.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.