I think you should always have some liquid savings to fall back on in case of job loss (voluntary or otherwise). It has to be a number you are comfortable with. For me that number is $10,000, for other people it may be more or less depending. It gives you options to do what you want, like leaving a stressful job. But I think the point of this article is not to overdo it and invest too much in an emergency fund to the point you miss out on other investment opportunities.
I buy vouchers occasionally, but only for goods and services that I'd use anyway without the discount--books, concert tickets, a local bakery--that sort of thing.
I currently have a 6-month emergency fund, but I fall into the "no debt and low expenses" category, so 6 months for me is only $10,000 ($1600x6=$9600, rounded up).
Yes, $1600 is not a whole lot to live on, and in good months I do spend more than $1600 from various other funds (allowance fund for high-ticket shopping items, or occasionally I go over my grocery budget by buying all organic foods from the farmers market, or go out to nice dinners with friends, for example). I know that there have been months where I've stuck to my $1600 baseline, and if I hit a rough patch I could go back to the basics in a snap.
Also, I'm 25 and if I needed to, I could move back in with my parents temporarily and cut my expenses to $600 per month, which would make my 6-month fund stretch to cover up to 16 months of living expenses in that situation! Or I could move abroad (back to Spain, where I lived before, for example) and easily cut my living expenses to $1000 per month and have the adventure of a lifetime.
I was recently thinking about increasing my 6-month fund to a 12-month fund just for more peace of mind, since I earn a variable income and things are slowing down for me, I may be jobless soon.
But then after reading this I realized a few things:
1. I have a "travel fund" that could easily cover a few more months of living/travelling abroad
2. I have an investment account that is earmarked for "future business/education" (in the event i decide to start a business that requires start-up cash, or go back to school) that is equal to at least another 6-month fund, and I can withdraw it without penalty.
3. Worst case, I can also withdraw from my Roth IRA in a true emergency.
4. I have other accounts in ING Direct such as "Allowance," "Emergency" etc. that can be used too.
5. I have no debt and can cut my expenses (mentioned above)
MOST IMPORTANT, I truly believe I could find another way to EARN MORE MONEY, even if it's less than I make more.
When I quit my stable job earlier this year and thought I would use my 6-month fund to live, I ended up finding a job within 3 weeks (after travelling abroad for 3 weeks).
If I hadn't found a job that fast, I could have done temp jobs, freelancing, etc.
So I think this is good advice...no additional emergency funds for me, I'll focus on maximizing my investments and earning more!
When I first moved in, I didn't get to know anyone. Now, years later I've really started to get to know my community and I love living there much more now. I joined the Board at my community and that really helped me get to know more people.
I definitely do buy vouchers. They're a great way to try new restaurants or experiences in my city with a cost savings to boot. I think it's important to research whether it's really a good deal or not though.
I used to buy them all the time, but now the deals are really bad. Seems like they've all started focusing on selling cheap crap no one wants! Oh well, the trend must be over.
I tried vouchers a couple of times but haven't repeated the experience. The only one that was truly successful was a groupon voucher for golf lessons at a nearby 9-hole golf course. My daughter and I took lessons together and had a great time. Most of the time the businesses and restaurants I would like to patronize do not offer vouchers. And I'm ashamed to say that I bought a voucher from Restaurant.com over a year ago and I still haven't gotten around to using them. So I think vouchers are not for me.
Yes! I buy use both Groupon and LivingSocial for deals at restaurants, spas, and gyms that use anyway. It's been a huge savings for me and I typically get a massage for $40 or so. I usually only buy a voucher for a company and I know and like so that I'm not dissapointed
Yes, I (still) use vouchers, but I have learned to a) read the fine print and b) really only order those I know I will use.
Too often, I have been burned by limitations or exclusions (the service/product is only valid if you buy another service/product, valid on Wednesday from 1:23 - 1:28 PM ET only, etc). And at least twice I have found expired vouchers crammed in the drawer of my front hallway table for restaurants or items I thought, "Hey, that would be neat to try." Nope.
Vouchers are great, but only if you're certain you will use them and read the fine print!
I review the offers but only purchase deals at places that I already patronize. I use them to get great discounts at restaurants where I usually eat. I am strong enough to turn down a good "deal" at a place I may not go to.
I bought two vouchers from Groupon this summer good for two tickets each to a wine tasting from local wineries. Though the price was great (half price of regular tickets), they certainly oversold and we were not even able to get through 1/4 of the tastings (wine & local foods) that were offered.
What types of experiences or services do you usually look for, and what sites do you use to find them?
I usually buy vouchers for entertainment on Groupon and Living Social. Also, I buy vouchers on restaurant.com.
How do you decide if a voucher is worth buying?
If I know that I will use the voucher and it brings a significant discount.
What would you say to those that believe that trusting only a few financial products might actually yield much butter results than diversifying into as many as possible?
To LAWN MOWING professional, is the ammonia sulphate you suggest the same fertilizer that is creating the horrible algae problem in the Great Lakes? I'm looking for something that won't add to an already serious problem created by the run-off from farms and am not sure that ammonia is a safe ingredient.
I think you should always have some liquid savings to fall back on in case of job loss (voluntary or otherwise). It has to be a number you are comfortable with. For me that number is $10,000, for other people it may be more or less depending. It gives you options to do what you want, like leaving a stressful job. But I think the point of this article is not to overdo it and invest too much in an emergency fund to the point you miss out on other investment opportunities.
I registered!
I have used a voucher but when I went to us it I had to buy another $7.50 to use the $10.00 voucher. NO more vouchers for me.
I buy vouchers occasionally, but only for goods and services that I'd use anyway without the discount--books, concert tickets, a local bakery--that sort of thing.
This is really helpful information!
I currently have a 6-month emergency fund, but I fall into the "no debt and low expenses" category, so 6 months for me is only $10,000 ($1600x6=$9600, rounded up).
Yes, $1600 is not a whole lot to live on, and in good months I do spend more than $1600 from various other funds (allowance fund for high-ticket shopping items, or occasionally I go over my grocery budget by buying all organic foods from the farmers market, or go out to nice dinners with friends, for example). I know that there have been months where I've stuck to my $1600 baseline, and if I hit a rough patch I could go back to the basics in a snap.
Also, I'm 25 and if I needed to, I could move back in with my parents temporarily and cut my expenses to $600 per month, which would make my 6-month fund stretch to cover up to 16 months of living expenses in that situation! Or I could move abroad (back to Spain, where I lived before, for example) and easily cut my living expenses to $1000 per month and have the adventure of a lifetime.
I was recently thinking about increasing my 6-month fund to a 12-month fund just for more peace of mind, since I earn a variable income and things are slowing down for me, I may be jobless soon.
But then after reading this I realized a few things:
1. I have a "travel fund" that could easily cover a few more months of living/travelling abroad
2. I have an investment account that is earmarked for "future business/education" (in the event i decide to start a business that requires start-up cash, or go back to school) that is equal to at least another 6-month fund, and I can withdraw it without penalty.
3. Worst case, I can also withdraw from my Roth IRA in a true emergency.
4. I have other accounts in ING Direct such as "Allowance," "Emergency" etc. that can be used too.
5. I have no debt and can cut my expenses (mentioned above)
MOST IMPORTANT, I truly believe I could find another way to EARN MORE MONEY, even if it's less than I make more.
When I quit my stable job earlier this year and thought I would use my 6-month fund to live, I ended up finding a job within 3 weeks (after travelling abroad for 3 weeks).
If I hadn't found a job that fast, I could have done temp jobs, freelancing, etc.
So I think this is good advice...no additional emergency funds for me, I'll focus on maximizing my investments and earning more!
I will buy vouchers if it's something I can use. I do buy the Restaurant.com for my son and daughter-in-law, but only if it's cheap!
When I first moved in, I didn't get to know anyone. Now, years later I've really started to get to know my community and I love living there much more now. I joined the Board at my community and that really helped me get to know more people.
I definitely do buy vouchers. They're a great way to try new restaurants or experiences in my city with a cost savings to boot. I think it's important to research whether it's really a good deal or not though.
Yes, I get massages and stuff like that!!!
When you live in a small town, the voucher system has very, very few opportunities. So, nope, it's not for me!
I used to buy them all the time, but now the deals are really bad. Seems like they've all started focusing on selling cheap crap no one wants! Oh well, the trend must be over.
I tried vouchers a couple of times but haven't repeated the experience. The only one that was truly successful was a groupon voucher for golf lessons at a nearby 9-hole golf course. My daughter and I took lessons together and had a great time. Most of the time the businesses and restaurants I would like to patronize do not offer vouchers. And I'm ashamed to say that I bought a voucher from Restaurant.com over a year ago and I still haven't gotten around to using them. So I think vouchers are not for me.
Yes! I buy use both Groupon and LivingSocial for deals at restaurants, spas, and gyms that use anyway. It's been a huge savings for me and I typically get a massage for $40 or so. I usually only buy a voucher for a company and I know and like so that I'm not dissapointed
All the time. Great savings thru groupon!
Yes, I (still) use vouchers, but I have learned to a) read the fine print and b) really only order those I know I will use.
Too often, I have been burned by limitations or exclusions (the service/product is only valid if you buy another service/product, valid on Wednesday from 1:23 - 1:28 PM ET only, etc). And at least twice I have found expired vouchers crammed in the drawer of my front hallway table for restaurants or items I thought, "Hey, that would be neat to try." Nope.
Vouchers are great, but only if you're certain you will use them and read the fine print!
I review the offers but only purchase deals at places that I already patronize. I use them to get great discounts at restaurants where I usually eat. I am strong enough to turn down a good "deal" at a place I may not go to.
I don't buy vouchers
I bought two vouchers from Groupon this summer good for two tickets each to a wine tasting from local wineries. Though the price was great (half price of regular tickets), they certainly oversold and we were not even able to get through 1/4 of the tastings (wine & local foods) that were offered.
waking up early and breathing fresh air makes me wonderful all day.
No, I used to look for them but I found that they were either too hard to use.
Do you buy vouchers? Yes!
What types of experiences or services do you usually look for, and what sites do you use to find them?
I usually buy vouchers for entertainment on Groupon and Living Social. Also, I buy vouchers on restaurant.com.
How do you decide if a voucher is worth buying?
If I know that I will use the voucher and it brings a significant discount.
What would you say to those that believe that trusting only a few financial products might actually yield much butter results than diversifying into as many as possible?
No, I have not yet bought a voucher.
I don't buy vouchers. I haven't really looked into it.
To LAWN MOWING professional, is the ammonia sulphate you suggest the same fertilizer that is creating the horrible algae problem in the Great Lakes? I'm looking for something that won't add to an already serious problem created by the run-off from farms and am not sure that ammonia is a safe ingredient.