Q on E-fund account(s)--Lindsey, etc?

iVillage Member
Registered: 12-12-2004
Q on E-fund account(s)--Lindsey, etc?
5
Sun, 05-28-2006 - 9:10pm
Hi, Lindsey--I read where you say have about $1000K in e-fund, then you mentioned something about "minor" and "major" e-funds? What is a minor/major e-fund? (sounds like a music composition LOL)---Anyway, do you use the ING as minor and another fund as major? For example, is one fund for medical, and another, for repairs that are unexpected? Are they labelled? Thanks. Whiz.
Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Mon, 05-29-2006 - 8:08pm

Hello Whiz,


At one point, I had a large lump sum check to deposit from my husband's severance. I called this our
"major" emergency fund. We also had $1000 in a savings account attached to our checking account. Now, I have just one emergency fund of $1000 in an Ing Direct account. Don't worry about the "major", "minor" thing, I'm not sure what that meant exactly. In any case, $1000 is called

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Mon, 05-29-2006 - 8:39pm

Whiz-

I am not sure because I am not familiar with the term "minor" emergency funds. I do see a lot of people who have sinking funds in ING. ING should be used if you won't need the money right away. It has a better return but takes 3-4 days to transfer it into your checking account.

I have 1000 in the bank for our emergency fund, basically to keep you from adding to your debt while you get out of debt. Then in ING I have a general savings(savings we continue to save while we are getting out of debt it is minimal) and Super Savings which is for our vacation right now. In this I am going to put a portion of DH extra earnings(50% after tithe) and any extra little bits of money we come into to fund our vacation. DH job is really stressful and he needs down time.

I do follow DR a lot but not to the letter. We were doing really well ourselves before I found DR but he has just helped us fine tune our plans some....

Loca

iVillage Member
Registered: 12-12-2004
Mon, 05-29-2006 - 11:30pm
Hi, Loca and Lindsey---Thanks for your info on this. It does add up to "major" "minor", i.e., if I am reading this correctly, the major fund is for 3-6 months (in case of layoff, injury, illness, catastrophy, etc.) and minor is for basic stuff, like medical (?), car repairs, insurance, broken appliances, etc.? Well, have a long way to go. DH is absolutely stressing about retirement (I would have to save $4k/month to catch up). We are now doing bills every other Friday, so we wont have the mess I did before. Just wish I could have a "kitchen fund", but that would take years. Whiz.
Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Tue, 05-30-2006 - 10:43am

Hello,


Whiz, there's a difference between having sinking funds for certain categories (auto repairs, appliance replacement, medical deductibles, etc) and having an emergency fund. The emergency fund covers *some* of these things when they are unplanned and unexpected, but if you set up a sinking fund at Ing for one of these categories, then really what you're doing is *budgeting* for these items.


The 3-6 month expenses fund is for those emergencies that you can't plan for, like long hospital stays, totalling a car, job loss, etc.


The "baby emergency fund" of $1000 is designed to allow you to pay for those expenses that you would normally set up a sinking fund for after paying off debt. I have set up sinking funds for homeowner's association fees and auto insurance premiums, because those items are *expected and budgeted for*.

Sincerely,
Lindsey Schocke


Geeks on Tap: Mission Accomplished

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

iVillage Member
Registered: 12-12-2004
Tue, 05-30-2006 - 11:21pm
Hi, Lindsey and Loca, and all--I think I get it now. The ING will be for the "big" things and the e-fund $1000 for the minor things. Must get busy and fund it. Whiz.