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Emergency funds are different for everyone when calculating we must take into account all unforeseeable possibilities. For example, I am a "Senior". Currently, a healthy, seventy-year-old member, gainfully employed with as much job security as anyone is able to enjoy (if there is such a thing) while also collecting my social security. My employer is generously offering a matching 401k at 100 %. Additionally, another perk I enjoy is that I live in "Affordable Housing". where I am obligated to pay 1/3 of my total income towards my rent. I recently became aware of "Emergency Fund Savings", thanks to a recent BECU Financial Health Check I requested, I realize that at anytime my circumstances could change suddenly thrusting me into a life of "poverty". It was an inspiring and educational session, to say the least. When I think about saving for an emergency fund I must also take into account the fact that once my income changes due to an unexpected emergency I would continue to be liable to pay my current "high rent" until the paperwork validating my lowered income is processed. This process can often take a few months to be exact although once the new information is calculated I would be reimbursed according to the date/time my income actually changes. There isn't any real time (cushy) cushion that I could escape from given my housing privileges. I also previously thought since all my credit cards are 'paid off', and I am enjoying a "debt free" lifestyle, I thought all I really needed to do is continue to enjoy life, give to those whose lives I value and save for my "after death" experiences in order to spare my loved ones of untold expenses that could inevitably transpire. I was wrong and the expert who spoke with me, who I allowed to view my budget properly informed me otherwise. We must save for an Emergency fund in the event of an unexpected illness or loss of a job or incur unexpected expenses relating to such an unfortunate set of circumstances. So, I say, keep your eyes on the prize. There is no amount that is too much to have for an unexpected emergency.
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Great idea. It would totally benefit my financial fitness goals especially if it were to be a pre-set member regulated percentage amount and applied only to the more frivolous expenditures. Haha...I think I really need real financial police officers.
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