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RikaKazak · #1 (**permalink**) 10-30-2009, 03:08 PM

So I was thinking about my emergency fund and I came up with a non standard idea, and was wondering what the LP community thought.

Basically, most financial people say to save 3-8 months in expenses in a savings account (or money market account) for big emergencies (job layoffs etc.) But I was thinking about doing it a little different. Hypothetically what if your emergency fund was $30,000. Would a good structure be $10,000 in a savings account, $10,000 in a money market account, and $10,000 in gold/silver?

Basically, your emergency fund would be split up into 3 different areas. That way if one bank/financial institution goes under the delay the FDIC would take wouldn't be bothersome. Also, by keeping some money in silver/gold you'd be a little more protected from inflation, and due to the nature of it being harder to exchange it'd make it so you only exchanged it in TRUE emergencies.

What do you guys think? (or am I thinking way too hard about this?)

Probability · #2 (**permalink**) 10-30-2009, 04:29 PM

seems like a good idea that would not take much time to set up. i would only add "10k under the bed".

the fox is bak jak · #3 (**permalink**) 10-30-2009, 06:49 PM

10k on red imo..

RikaKazak · #4 (**permalink**) 10-31-2009, 01:21 PM

Quote:

Originally Posted by Probability

seems like a good idea that would not take much time to set up. i would only add "10k under the bed".

What about $10K frozen in an ice block in the freezer?

Probability · #5 (**permalink**) 10-31-2009, 09:51 PM

Quote:

Originally Posted by RikaKazak

What about $10K frozen in an ice block in the freezer?

thats where i keep my mervyn's card.

Maximus13 · #6 (**permalink**) 12-22-2009, 01:44 AM

What did you decide Rika?

RikaKazak · #7 (**permalink**) 12-23-2009, 05:31 PM

Quote:

Originally Posted by Maximus13

What did you decide Rika?

I like the idea of splitting it up...and it's what I'm currently doing. However I'm still not 100% sold on the idea, so if someone came up with a good argument against it, I'd probably switch back to my old way.

Maximus13 · #8 (**permalink**) 12-23-2009, 07:46 PM

Quote:

Originally Posted by RikaKazak

I like the idea of splitting it up...and it's what I'm currently doing. However I'm still not 100% sold on the idea, so if someone came up with a good argument against it, I'd probably switch back to my old way.

Well its never a good idea to put all your eggs in one basket, so I can't see how it could be a bad thing.