Emergency Fund - How Much?

[scott h]

CHECKS---We used checks extensively when building the house. We paid for almost all our building material with check. However, for the first check we had to wait until the check cleared before we go our material. After "credit" was established we could issue a check at anytime. Any other time we used a check we had to wait for it to clear before service or material was provided. For the majority of other purchaces we use credit cards...sorry.

[BrettGC]

Funny the vagaries of US and English spelling - Cheque vs Check, gaol vs jail etc.  Thanks for that Scott, clears it up for me.  That's what I love about my Visa debit card, operates as a credit card where the savings/checking button isn't an option.  You just have to have the funds in your account.

[Thomas]

Well I don't do credit cards, ever. Haven't since my divorce in '99. With the advent of Visa/Mastercard debit I haven't had the need. I've either saved for stuff (remember when we all used to do that) or just don't bother. Hell, i haven't even had a bank loan for years other than my investment property in Sydney.

Well. I agree with you concerning not using credit cards or loans for living costs

but loans for investments,

BUT I find it wasting to have SAVED money as emergency fund, laying there waiting doing nothing, although they perhaps never will be needed...

I think better have "all" (except what's needed within a normal month) invested in stocks (except when not finding any interesting ones) or something else fast sellable, plus check credit/credit card for emergencies, if need money faster than stocks can be sold and transfered.

[Dave Hounddriver]

So in addition to having money in the bank, and credit if you need it, don't you need an actual emergency cash fund? Or am I overstating hospitals cash requirements?

 

In a small, rural hospital in the province you will often find that they don't even take credit cards.  However, any moderate sized, well equipped, private hospital will accept your credit card and that is basically all you will need IF you don't mind being held hostage by the pharmacy in the hospital that will charge you much more than the cash pharmacies just outside the gate.  In addition, you will need food brought to you unless you can stomach filipino hospital food.

 

So I have my credit card and a few thousand pesos.  If I had a major incident I would likely end up as a burden on my family members back home or I would just die.  Thats just the way it is.  A good friend of mine is dying in hospital as I write this.  He had no money to properly take care of himself and he will die any time now.  His wishes were to die on his couch and not be a burden on friends or family members but his gf would have none of that so as soon as he got too weak to argue with her she got him to the hospital.  I have no idea who will pay but likely his daughter back in the US.  He is suffering from heart failure at 71 years old.

[sjp52]

A credit card is good and you should not be in a hospital that does not take credit cards if it is a serious operation you need for more reasons than them not accepting your credit card.   You should include a monthly amount in your budget to put aside for emergencies also  ( just like you were paying for health insurance ). I realize some people can not afford that much but every little bit counts.

 

Just remember if you arrive in a hospital and need a expensive operation and you have no money ( well it was nice knowing you ). Of course Phil Health is a given. If you cant afford that then you shouldn,t be here.

 

The first thing I told my wifes family is if you don,t have Phil Health then I won,t help when it comes to emergencies. They all have it now and I was only bluffing lol. These are the years for most of us that our bodies start to wear out and we need replacement parts or tune ups. Theres no such thing as a free ride in the Philippines

 

Fortunately for me I am going to live a long and healthy life, Thanks to my wife. I have never ate so many vegetables in all my life and every morning the nagging come on hubby time to walk walk walk. How will i ever survive it :lol:

[sjp52]

 

So in addition to having money in the bank, and credit if you need it, don't you need an actual emergency cash fund? Or am I overstating hospitals cash requirements?

 

In a small, rural hospital in the province you will often find that they don't even take credit cards.  However, any moderate sized, well equipped, private hospital will accept your credit card and that is basically all you will need IF you don't mind being held hostage by the pharmacy in the hospital that will charge you much more than the cash pharmacies just outside the gate.  In addition, you will need food brought to you unless you can stomach filipino hospital food.

 

So I have my credit card and a few thousand pesos.  If I had a major incident I would likely end up as a burden on my family members back home or I would just die.  Thats just the way it is.  A good friend of mine is dying in hospital as I write this.  He had no money to properly take care of himself and he will die any time now.  His wishes were to die on his couch and not be a burden on friends or family members but his gf would have none of that so as soon as he got too weak to argue with her she got him to the hospital.  I have no idea who will pay but likely his daughter back in the US.  He is suffering from heart failure at 71 years old.

 

Sorry to hear about your friend Dave.

[BrettGC]

Same Dave, my "like" is for the first half of the post.  Sorry to hear about your friend as well. 

 

Yeah, Phil Health is a given for me also.  Most of SAO's family have it too. I guess the other option is getting a credit card and just keep it in the black.  The bank will hate me but I could care less about that. 

 

Thomas, much like you, not all my money is tied up. I have some investments that can be liquidated very quickly, others, not so much.  

 

I know they say no point of burying you with it; might be time to just bite the bullet.

[jon1]

One way to keep your credit rating up is to allow a balance to carry forward at statement time. Then pay off what the STATEMENT BALANCE was. For example, you have a $200 statement balance but $300 charged to the card. You pay the statement balance after the new period starts and no interest is charged. This shows activity but also keeps your credit rating up. I too have been debt free for the last 5 years and continue to use my credit card for online purchases stateside. I rarely use it in the Phil (Airline fares mostly). The problem with a debit card from the US is that you could get wiped out if compromised and it can take 45 days to recover your money (maybe). Whereas, if it is a credit card you are only liable for $50. I learned this 3 years ago when $500 was fraudulently charged to my debit card. Lucky for me I was able to get it back after 6 weeks but learned my lesson on the value of a credit card.

[Tukaram (Tim)]

Yeah I have been debt free for years.  But in the US I charged everything!  Got tons of airline mileage points for charging everything - then paid my balance off every month. My rating got up to 830.  Been here a year and charged virtually nothing.  My rating dropped to 810 recently and this month down to 776.  I need to start using my card again just to keep the rating.  I may need it one day ha ha.

Edited April 9, 2014 by Tuka Ram

[Thomas]

One way to keep your credit rating up is to allow a balance to carry forward at statement time. Then pay off what the STATEMENT BALANCE was. For example, you have a $200 statement balance but $300 charged to the card. You pay the statement balance after the new period starts and no interest is charged. This shows activity but also keeps your credit rating up.

Are your credit card companies that crazy, judge credit rating after ACTIVITY at a CREDIT card???

In Sweden credit rate depend of

1. having no remarks of failing to pay bills

2. income

3. allready approved credits REDUCE the credit rate left