1. myfijourney says:

    I break all the rules with this one. I keep my money accessible in a savings account, but I use it as a gauge for how many puts I can sell via my margin account. So I'm investing it for all intents and purposes. If a put gets assigned to me, I'll pull the money out of my emergency fund in order to pay for the stock. The emergency fund is still accessible in the case of a real emergency (like needing a new car), but keeping a large pile of idle cash no longer makes sense. Paying one month's worth of credit card interest will be way less than missing out on years of investment gains. Plus there are tons of zero percent financing deals out there where I can have the money for the emergency and then pay it off in full before any interest kicks in.
    My recent post Direct Real Estate Investment vs REITs

    • Interesting approach myfijourney! It's definitely on the more aggressive side.

      For me, I like having the emergency fund for safety. I'm OK with missing out a little bit of gains in exchange for the security.

  2. I'm a big fan of the Roth IRA emergency fund strategy – nicely presented! However, I hedge contributions in my Roth with similar deposits into a savings account. Depending on the emergency, I can draw upon Roth contributions or savings and it has been working for us for over 5 years now. As we own rental property, it's critically important for us to have liquid reserves for repairs and meeting mortgage obligations during vacancies.
    My recent post What’s In Your Homeowners Insurance Policy?

    • Sounds like a good method Hunter. Thanks for sharing.

      In general, how much in liquid reserves do you have to keep on hand for your rental property?
      My recent post Are You Making These Rookie Couponing Mistakes?

  3. I see too many people try to invest their savings account into a non liquid fund. Some try to invest the money but it looses it liquidity as soon as their is a loss on the investment.
    My recent post Mr. Military Money: Weekly Roundup

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