Comments for Two Talents http://2talents.wordpress.com Using Your Finances To Meet Your Goals Fri, 23 Nov 2007 22:45:19 +0000 http://wordpress.com/ hourly 1 Comment on Budgeting Tools by Linda http://2talents.wordpress.com/2007/11/14/budgeting-tools/#comment-10 Linda Fri, 23 Nov 2007 22:45:19 +0000 http://2talents.wordpress.com/2007/11/14/budgeting-tools/#comment-10 Hi Jenn!! Thanks for posting this! You=awesome :) Hi Jenn!! Thanks for posting this! You=awesome :)

]]> Comment on Emergency Fund How To, Part 2 by Linda http://2talents.wordpress.com/2007/11/20/emergency-fund-how-to-part-two/#comment-9 Linda Fri, 23 Nov 2007 22:43:18 +0000 http://2talents.wordpress.com/2007/11/20/emergency-fund-how-to-part-two/#comment-9 Hi Jenn! Well, that's the thing with managing your finances. .. you have to tailor it to your own lifestyle :) If you have a history of needing large sums quickly for legit emergency purposes, then of course it is wise to keep some funds readily accessable! I should have been a bit clearer about defining "hard to access" as well. It definitely does not mean you can't get the funds, or that it takes weeks and weeks to get your money. For example, I can transfer from my money market to my savings in about 1 business day through an electronic transfer (although there is a small fee for this), and even if I have them generate a check it takes just about 4 days. But what it boils down to is managing the emergency account so that you don't spend it on non-emergencies, and there isn't one-size-fits-all way to do that, since everybody (and their situation) is different :) Hi Jenn! Well, that’s the thing with managing your finances. .. you have to tailor it to your own lifestyle :) If you have a history of needing large sums quickly for legit emergency purposes, then of course it is wise to keep some funds readily accessable!

I should have been a bit clearer about defining “hard to access” as well. It definitely does not mean you can’t get the funds, or that it takes weeks and weeks to get your money. For example, I can transfer from my money market to my savings in about 1 business day through an electronic transfer (although there is a small fee for this), and even if I have them generate a check it takes just about 4 days.

But what it boils down to is managing the emergency account so that you don’t spend it on non-emergencies, and there isn’t one-size-fits-all way to do that, since everybody (and their situation) is different :)

]]> Comment on Budgeting Tools by Jenn http://2talents.wordpress.com/2007/11/14/budgeting-tools/#comment-8 Jenn Fri, 23 Nov 2007 18:15:31 +0000 http://2talents.wordpress.com/2007/11/14/budgeting-tools/#comment-8 I've found YNAB to be excellent, too. It's easier to use if you have a month's income saved up (i.e. the first rule the program is based on), but it's still worth it even if you don't. http://www.youneedabudget.com I’ve found YNAB to be excellent, too. It’s easier to use if you have a month’s income saved up (i.e. the first rule the program is based on), but it’s still worth it even if you don’t.

http://www.youneedabudget.com

]]> Comment on Emergency Fund How To, Part 2 by Jenn http://2talents.wordpress.com/2007/11/20/emergency-fund-how-to-part-two/#comment-7 Jenn Fri, 23 Nov 2007 18:12:34 +0000 http://2talents.wordpress.com/2007/11/20/emergency-fund-how-to-part-two/#comment-7 I tend to disagree with keeping all of your emergency fund where you can't access it. For example, Mark has bad luck with cars. If it breaks down on a holiday or on the weekend (when banks tend to be closed on Sunday and have limited Saturday hours), then he couldn't access the savings account for the repairs. At that point, it's better to have say $1,000 in checking so you know you can write a check or use the debit card it for sudden repairs or other emergencies. The rest can sit in a high yield savings account elsewhere. Sure, this means that you could be easily tempted to use that $1,000 frivolously. But the point of having an emergency fund is having the funds when you need it. But if you can't get to the funds, what's the point? I tend to disagree with keeping all of your emergency fund where you can’t access it.

For example, Mark has bad luck with cars. If it breaks down on a holiday or on the weekend (when banks tend to be closed on Sunday and have limited Saturday hours), then he couldn’t access the savings account for the repairs. At that point, it’s better to have say $1,000 in checking so you know you can write a check or use the debit card it for sudden repairs or other emergencies. The rest can sit in a high yield savings account elsewhere.

Sure, this means that you could be easily tempted to use that $1,000 frivolously. But the point of having an emergency fund is having the funds when you need it. But if you can’t get to the funds, what’s the point?

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