Comments on: Building Up that Emergency Fund

By: DivvyDad

DivvyDad — Tue, 12 Mar 2019 02:49:37 +0000

Great to see you’re building that emergency fund. I’m a big believer in having one and as I’ve gotten older I have found myself being more conservative by building a larger stockpile. Some might say I’ve got too much cash only earning 2%+ but I’ve found it the right balance after changing jobs last year.

I do tap into it from time to time when there are great buying opportunities but then replenish it over time. I’m preparing to dip in soon as part of a real estate investment, which wouldn’t have been possible if I didn’t have the savings. Everyone will have a different number and different philosophy on what warrants use of funds, but that’s what’s great about personal finance.

By: My Dividend Dynasty

My Dividend Dynasty — Thu, 21 Feb 2019 23:07:02 +0000

In reply to Dividend Diplomats.

Definitely agree with you Bert! $12,000 would certainly make me happy. As for monthly dividend income, I would like to avoid using that as an emergency fund since I prefer to reinvest that money in new stock purchases. I also consider my emergency fund there so I don’t have to use my dividend income.

If it ever came down to a situation where I am really desperate, then I would use dividend income. I guess dividend income could be considered the “last resort” emergency fund. But once my dividend income is large enough I plan on using it to cover my expenses fully with money left over. That day will come someday. The snowball keeps getting bigger and bigger! 😀

By: My Dividend Dynasty

My Dividend Dynasty — Thu, 21 Feb 2019 22:49:58 +0000

In reply to Brian Kehm. Hi Brian! It is great peace of mind to have a buffer to cover any financial setbacks. I belive it is an important step down the path to financial freedom. I will be most likely making new purchases in April once my cash stockpile fully replenishes. Sound like you have a great plan as well. I think 90% or more in dividend stocks is a great idea! Best of luck to you! :)

By: My Dividend Dynasty

My Dividend Dynasty — Thu, 21 Feb 2019 22:41:35 +0000

In reply to DSFI. Hi DSFI! I understand your situation completely. Don't give up though. If you save and invest small amount they will add up to large amounts over time. Thank you for stopping by! Best wishes! :)

By: Dividend Diplomats

Dividend Diplomats — Thu, 21 Feb 2019 22:18:09 +0000

To echo what Lanny said earlier, it is all about what makes you most comfortable. Some people want 3 months and others want 12. The point is to keep around an amount that makes YOU happy. I’m glad that your accounting is building and accumulating and you are getting into that comfort zone. Just out of curiosity, would you consider your monthly dividend income part of your emergency fund? Since you know that you are going to have X of cash each month to rely upon if needed?

Bert