01-09-2015, 12:10 PM
Here are my $0.02 worth.
I think part of the question is what is your employment and family situation. Is your job stable, is your income consistent and reliable or do you depend on commissions? Do you have a wife or kids and is your wife also employed?
Do you have short and/or long term disability insurance?
I think those questions determine how much of a fund you need. If you have a stable job and few liabilities than 3 months should be fine. If you are in sales and relying on commissions for income and have a stay at home wife with 4 kids, it would probably be better to have more than that.
I wouldn't be concerned too much about earning any income on your emergency fund. The money should be liquid and easily accessible if you have an emergency. The purpose of the fund is safety and insurance, not an investment.
I think if you have an emergency and deplete the fund, you should put investing on hold until the fund is built back up.
Depending on the debt you are talking about paying extra on, I wouldn't be making investments until it is paid off. Mortgage on your personal home or possibly a very low interest student loan is ok, but if you have credit card debt, car loans, etc. then pay those off before beginning any serious investing.
I think part of the question is what is your employment and family situation. Is your job stable, is your income consistent and reliable or do you depend on commissions? Do you have a wife or kids and is your wife also employed?
Do you have short and/or long term disability insurance?
I think those questions determine how much of a fund you need. If you have a stable job and few liabilities than 3 months should be fine. If you are in sales and relying on commissions for income and have a stay at home wife with 4 kids, it would probably be better to have more than that.
I wouldn't be concerned too much about earning any income on your emergency fund. The money should be liquid and easily accessible if you have an emergency. The purpose of the fund is safety and insurance, not an investment.
I think if you have an emergency and deplete the fund, you should put investing on hold until the fund is built back up.
Depending on the debt you are talking about paying extra on, I wouldn't be making investments until it is paid off. Mortgage on your personal home or possibly a very low interest student loan is ok, but if you have credit card debt, car loans, etc. then pay those off before beginning any serious investing.