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"Slush Fund"/Emergency Fund

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LitigatorChick

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NewEnglandLady, I have no separate accounts - all our accounts are joint. I would feel dishonest stashing money away without hubby knowing.

We budget loosely. We plan for monthly savings for investing/retirement, for our home (by upping significantly our mortgage payments), and for our kidlet''s education. That is about the end of the budget. Even with this loose system, we end up with a surplus, which we end up socking into one of these categories.
 

neatfreak

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Date: 5/28/2008 9:46:43 AM
Author: LitigatorChick
NewEnglandLady, I have no separate accounts - all our accounts are joint. I would feel dishonest stashing money away without hubby knowing.


We budget loosely. We plan for monthly savings for investing/retirement, for our home (by upping significantly our mortgage payments), and for our kidlet''s education. That is about the end of the budget. Even with this loose system, we end up with a surplus, which we end up socking into one of these categories.
I don''t think she''s suggesting stashing without your hubby knowing, but instead just stashing in another account so that you can feel like there is some slush around, but so your husband doesn''t feel like everything is sitting around doing nothing.
 

LitigatorChick

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Thanks for the clarification, Neatfreak. Hubby does not want us or me to have any other separate slush fund. That''s really my issue.
 

neatfreak

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Date: 5/28/2008 10:01:01 AM
Author: LitigatorChick
Thanks for the clarification, Neatfreak. Hubby does not want us or me to have any other separate slush fund. That's really my issue.
Ahhhh...why not? I think you just need to sit down and explain to him that having some money set aside is really helps your anxiety and although he doesn't understand it would really make you feel better if it were available. He really should respect your wishes too about it. Maybe you can come up with a lesser sum that is stashed somewhere that you can both be comfortable with?
 

LitigatorChick

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He agrees with the banker. He says we have never needed and he can''t anticipate us needing a slush fund. If we needed money, we have access to cheap funds on our line of credit. Since the risk is low, he says we should be investing that money, where we can earn a good rate of interest.
 

neatfreak

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Date: 5/28/2008 10:15:25 AM
Author: LitigatorChick
He agrees with the banker. He says we have never needed and he can't anticipate us needing a slush fund. If we needed money, we have access to cheap funds on our line of credit. Since the risk is low, he says we should be investing that money, where we can earn a good rate of interest.
Can't the man compromise and let you have a little slush too? Wouldn't even like $5,000 make you feel better?

I agree with your husband in theory, but I also understand where you are coming from. I like having a bit easily accessible too.

Or what about in a high interest savings? That's where our easily accessible $ is. I can get it in a day or two, but it also earns 4.5%, so it beats inflation at least.
 

LitigatorChick

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I''ve tried that. Hubby says why anything at all, even $5,000. He really does not care that it makes me feel better (I know that sounds bad, but that is DH - feels are irrelevant, logic prevails). So I need to appeal to his sense of logic on this one, and hoping the PSers can give me some (or tell me I don''t need to have such a fund).
 

lyra

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That''s unfortunate your DH doesn''t want the slush fund. I like to have things set up just in case. Like our insurance, I''m really anal about that. I feel we never have enough life insurance, and DH is "What, you want to be rich if something happens to me?". No, I just want peace of mind, and that''s worth something. It lets you live with less worry.

I think it''s almost tempting fate to say it''s a low risk thing. You just never ever know. A very long term illness, even with disability insurance can wreak havoc. Job losses happen in even the most secure positions. Accidents happen. It''s possible that an illness could put one of you out of work permanently, you just never know. I''m sorry for feeding your paranoia. I just feel strongly that you need the slush fund if only for your peace of mind. It''s almost like if you have it, you can check it off a mental list and just go on with your life. I think that''s worth something. I don''t feel like 20K is too much either. The funds are still available if a great investment opportunity comes up or something. Or if you need some major work done on your house. JMO.
 

LitigatorChick

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Would a person consider their non-registered investments to be the "emergency fund"???
 

Dancing Fire

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LC....wish i had your problems
loaded with
and getting hit on. WOW !! what a life
 

saltymuffin

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Anything that you can withdraw very quickly (a day or two), which has no penaltys to withdraw, and you would be happy to withdraw at any time (ie. not stocks), can make up a slush fund.

The amount of $ you have in your chequing account seems to be a pretty good slush fund in itself, unless your basic monthly costs are very high. $15k would easily last us for an entire year if we needed it to. I try to never have more than $200 in mine, as I don''t write cheques, and pay for everything I can on credit cards. I hate loosing interest!

If you get your mortgage paid off, I would say that with the 15k cash you already have, you probably don''t need another emergency fund.
 

canuk-gal

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HI:

I dislike armchair psychology because I do it ill, but I''ll go out on a limb here--that this has nothing to do with slush funds.

But rather with values, consumption/spending patterns, earning power....and basic power struggles within the marriage dynamic......the new banker simply opened the "portal"...........


cheers--Sharon
 

LitigatorChick

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Date: 5/28/2008 12:42:32 PM
Author: Dancing Fire
LC....wish i had your problems
loaded with
and getting hit on. WOW !! what a life
Funny, DF. Far from loaded, but secure. Now the hit on part is kinda weirding me out - I swear, every man in this city is getting all weird with the warm weather!!!
 

LitigatorChick

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Date: 5/28/2008 12:46:27 PM
Author: canuk-gal
HI:

I dislike armchair psychology because I do it ill, but I''ll go out on a limb here--that this has nothing to do with slush funds.

But rather with values, consumption/spending patterns, earning power....and basic power struggles within the marriage dynamic......the new banker simply opened the ''portal''...........


cheers--Sharon
Oh Canuk, you wise woman. Why can''t this stuff be easy!!!!
 

moremoremore

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We keep gold bars in the basement for a rainy day..(you know, right next to my lost Tutankhamun mummy)...If anyone wants the address let me know

Apologies way in advance...I just couldn''t help myself...
 

LitigatorChick

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Hmmmmm gold bars you say MMM....
 

LitigatorChick

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I just read on MSN Money about keeping at least $500 in your chequing account. Holy cow - do I have way more than average in my chequing account? Have I basically got a built in "emergency fund"?
 

NewEnglandLady

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Date: 5/28/2008 3:05:22 PM
Author: moremoremore
We keep gold bars in the basement for a rainy day..(you know, right next to my lost Tutankhamun mummy)...If anyone wants the address let me know

Apologies way in advance...I just couldn''t help myself...
Haha, I wish we kept gold bars in our basement instead of U.S. dollars in our accounts---they certainly would hold their value! :)
 

Dancing Fire

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Date: 5/28/2008 5:14:11 PM
Author: NewEnglandLady

Date: 5/28/2008 3:05:22 PM
Author: moremoremore
We keep gold bars in the basement for a rainy day..(you know, right next to my lost Tutankhamun mummy)...If anyone wants the address let me know

Apologies way in advance...I just couldn''t help myself...
Haha, I wish we kept gold bars in our basement instead of U.S. dollars in our accounts---they certainly would hold their value! :)
you wouldn''t say that if you had gold bars sitting in your basement from 1992-2004.
gold traded b/t $315-$340 for a long period of time. i remember just for 1 day
spot price for platinum was $1 lower than gold.
 

neatfreak

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Date: 5/28/2008 5:01:03 PM
Author: LitigatorChick
I just read on MSN Money about keeping at least $500 in your chequing account. Holy cow - do I have way more than average in my chequing account? Have I basically got a built in ''emergency fund''?
Yes, you totally have an emergency fund in your checking account if your DH will let you keep it! We only keep a few hundred in there over our bills each month for a cushion. The rest of our $ is in money market accounts or in a high interest savings account. Both are easy to access if we need it, but then you aren''t losing a ton of interest in your checking account which essentially loses $ because you don''t even make enough interest to cover inflation.
 

iheartscience

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This is funny because my fiance is exactly the same way as you, LC-he has way too much $ in his checking account. It's definitely tied into his psychological make up...he needs it there to feel secure, I guess. I like to tease him about it, but if that's what he needs, so be it. I feel fine with $5 in the checking account, but that's probably because I know someone (him, parents, sister) will be there to bail me out if I really needed money! I personally think if it makes you feel better and less anxious, your husband should lay off.
 

moremoremore

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OH DF, don''t be silly...I had the Hope Diamond to fall back on...silly boy!
 

LitigatorChick

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Our monthly expenses are definately more than a few hundred bucks (oh the cars, how I love the cars....), so I am justified in keeping more than that in the account. If an emergency struck, we have relatively liquid investments to go to, beyond what is in the chequing account (unfortunately, the golden handcuffs of the legal profession would not allow this LC to live for 1 year on $15K).

Do people have a savings account for things other than emergencies, like vacations or bling?
 
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