01-09-2015, 12:35 PM
EricL summarized it well. We use a similar strategy.
My wife has a very stable and secure job. My job, not so much. Both of us have short term and long term disability insurance coverage (and life insurance). Considering all these points, we maintain approximately 3-4 months in emergency fund cash.
In the past, I used to invest that in bond funds, but in the last year, we decided to move it to cash. I still see that cash as dead money not being invested, but take refuge in knowing that the current low inflation environment is not eroding that value rapidly.
My wife has a very stable and secure job. My job, not so much. Both of us have short term and long term disability insurance coverage (and life insurance). Considering all these points, we maintain approximately 3-4 months in emergency fund cash.
In the past, I used to invest that in bond funds, but in the last year, we decided to move it to cash. I still see that cash as dead money not being invested, but take refuge in knowing that the current low inflation environment is not eroding that value rapidly.