Where do PPers park their short term/emergency funds?
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Re: Where do PPers park their short term/emergency funds?
Adam, I agree to some extent. I can't see credit card companies continuing to allow you to build a balance and auto bill pay working when you can't even go to the bank and get physical cash. That just seems completely contradictory to me. If you can't get cash, credit is tighter than a snare drum, and methinks these devices would be worth the plastic or digital ones and zeros that they consisted of.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: Where do PPers park their short term/emergency funds?
One of the things I like about the PP is that it gives me an excuse to hold a large chunk of cash, something that I didn't do pre-PP (heck, I didn't even have a good emergency fund). And I think that a portion of that cash, say one-month's worth of necessities, should be kept close to home where it could easily be obtained if needed. As HB said, if the banks closed you wouldn't be the only one without cash, but why not just avoid that entirely by having some set aside for unthinkable emergencies.
As far as where to park the cash not buried in a mason jar, I have a portion in Treasury Direct T-bills, I and EE savings bonds, SHY, 401K short-term bond fund, and an online savings account. My goal is to keep no more than a third in the savings account, with the rest in presumably more secure options.
And as far as chaps, may I suggest those from Foxcreek, they're great! http://www.foxcreekleather.com/mens_menschaps
As far as where to park the cash not buried in a mason jar, I have a portion in Treasury Direct T-bills, I and EE savings bonds, SHY, 401K short-term bond fund, and an online savings account. My goal is to keep no more than a third in the savings account, with the rest in presumably more secure options.
And as far as chaps, may I suggest those from Foxcreek, they're great! http://www.foxcreekleather.com/mens_menschaps
"Machines are gonna fail...and the system's gonna fail"
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Re: Where do PPers park their short term/emergency funds?
When I would travel many years ago, I would use travelers checks as a precaution because they are generally accepted everywhere. Like the cash in your wallet, travelers checks don't earn interest; but the checks are replaced by the issuing company if they are ever stolen. The checks also never expire; they can be used at any time in the future (as long as the issuing company is still in business).
After the trip, I would keep some of the unused checks in my car in case I needed emergency money while on the road (nowadays, I depend on my credit cards and auto club membership if I ever have a roadside emergency). I don't know if travelers checks would still be accepted after a banking crisis (I guess it depends on what kind of crisis we have). But I might again carry some of my cash in travelers-check form as a protection against theft.
After the trip, I would keep some of the unused checks in my car in case I needed emergency money while on the road (nowadays, I depend on my credit cards and auto club membership if I ever have a roadside emergency). I don't know if travelers checks would still be accepted after a banking crisis (I guess it depends on what kind of crisis we have). But I might again carry some of my cash in travelers-check form as a protection against theft.
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