1. Sustainable Living says:

    I think that this is a great metric – right now, I'm finishing up paying off debt, and have about 5-7% of my total net worth in liquid cash accounts. I'm OK with that for now, because we are re-doing the house and the savings doesnt stay in there very long (unfortunately)
    My recent post Lending Club 6 Month Update

    • So you want to have more in cash? I think as long as you are forecasting upcoming needs (like if you have a big remodeling project planned) and move money into cash, you don't need much more than that sitting in an emergency fund!

  2. Ha! I'm assuming the rapper allocation is fake yeah?

    $100,000 in equity and $400,000 in Lambos is messed up.

    But, I'd rather have a $1 mil net worth than $100,000!

    • Haha, true, $1 million is better than $100K. The rapper allocation is fake, but I think I'm pretty close for any rapper of the Wiz Khalifa/Drake/Rick Ross variety! Imagine 40% of your net worth is in cars. I think I would stop driving!
      My recent post You Don’t HAVE to Do Anything!

  3. It makes sense to me to have an emergency fund! However, your emergency fund is money you will rarely, if ever, use. Why not put most of it in laddered CD's? It's easily accessible, makes some interest (not much I know but some) and there is a dis-incentive on inappropriately using it – the withdrawal penalty. Once it has been in the CD 90 days (in my credit union with a 3 month interest penalty) the worst that will happen is I'll lose my interest, not my principle. When fully funded and properly laddered, you will have a CD maturing monthly. Pay emergency costs with a credit card and use that month's maturing CD to pay of f the credit card.

    • That's a cool idea, and I had not heard of laddered CD's. I will have to check my bank to see what the minimum is for these CDs. But, you still probably will not have too many situations where you need access to ALL of your cash immediately. So if you have other funds and multiple sources of income, you should be able to get through most situations.
      My recent post You Don’t HAVE to Do Anything!

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