I've been thinking about cash accounts lately - how much is necessary for lumpy expenses and an emergency fund.
- Job loss/reduced income
- House expense
- Auto expense
- Medical bills
- Legal issues
- Family issues
- Aging issues
Are there any other categories I should consider? Trying to balance what falls into something that I can cash flow, what would be pulled out of emergency fund vs liquid/brokerage/iBonds, and where I should consider additional insurance products.
What insurance do you have now? Presumably health, auto, home, umbrella, and life. It’s good to review coverage at least annually.
What coverage does your workplace cover for accidents / workman’s comp? Do you need professional insurance? (you probably have it if you need it).
We just carry enough cash / short term bonds to cover deductibles, any appliances which could reasonably break down, the next month’s routine expenses and any major planned expenses in the next 6 months. 6 months routine expenses is a better standard suggestion.