PENNIES AND POUNDS
  • Home
  • Blog
  • Crypto
  • Crypto
  • Books
    • The Call of the Wild
    • Thinking, Fast and Slow
    • Are We Smart Enough to Know How Smart Animals Are?
  • New Page
  • Terms and Conditions
  • Home
  • Blog
  • Crypto
  • Crypto
  • Books
    • The Call of the Wild
    • Thinking, Fast and Slow
    • Are We Smart Enough to Know How Smart Animals Are?
  • New Page
  • Terms and Conditions

​


​the blog

When is it ok to touch your rainy day fund? Don't touch it until you read this article.

1/10/2016

Comments

 
Don't foolishly fall into the trap that derails many financial plans and needlessly taps into people's emergency funds: mistaking a non-emergency for a real financial emergency. A financial emergency is something unexpected, not something that predictably happens every so often. 

Read our comprehensive article on emergency funds for more on the randomness of life and how so many things are unpredictable (that's why we have to have an emergency fund)

Here's what unexpected means: that you cannot reasonably anticipate the nature of the financial emergency in advance. You can of course anticipate that a financial emergency will occur based on the nature of our reality and existence, but you cannot reasonably predict what it will be.

Therefore, the following would not properly be considered financial emergencies:
  • oil change
  • new spark plugs
  • child's college tuition payment
  • wedding expenses
  • Christmas (or other holiday) gifts
  • birthday gifts

The above are not emergencies because we can anticipate them - we have anticipated them for you and we don't even know you.

Real financial emergencies, however, are things that we think might happen, but things we cannot predict in any reasonable way from where we currently are. We know we might get a flat tire or injure our ankle, but we don't know if that will ever happen, when it could happen, and the financial cost of it.

Do not confuse rare expenses with financial emergencies - you will not be served well by doing so because you will consistently fail to build lasting wealth if you dip into your emergency fund to pay for things that are not at all emergencies.
Comments

    Archives

    October 2019
    September 2019
    August 2019
    January 2018
    December 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    October 2016
    July 2016
    April 2016
    January 2016
    December 2015
    November 2015
    August 2015
    October 2014
    July 2014
    May 2014

    Categories

    All
    Beta
    Bitcoin
    Bitcoin Cash
    Book Reviews
    Cardano
    Commodities
    Cryptoassets
    Cryptocurrency
    Dash
    Derivatives
    Dow Jones
    Economics
    Emergency Fund
    Entrepreneurship
    Ethereum
    Finance
    History
    Income
    Inspiring Quotes
    Investing
    IOTA
    Learning
    Litecoin
    Money
    News
    Options
    Personal Finance
    Poems
    Politics
    Professional Development
    Psychology
    Random
    Real Estate
    Retirement
    Ripple
    Risk
    Saving
    Self Development
    Small Business
    Stocks
    Stock Screening
    Taxes
    Videos
    Warren Buffett

    email list

    RSS Feed

Home

CryptoHub

Saving

Investing

Personal Finance

Stocks

Pennies and Pounds is a site dedicated to your financial well-being. From saving, investing, and earning more income, we've got great financial content covering the spectrum of modern personal finance. This site's goal is to be more than just a regular personal finance site - we want to be an all-encompassing place for all things finance-related including topics such as earning more money, saving more money, investing better and more effective ways, planning for your financial future properly, and appreciating what you have now.

And now, given the rise of cyrptocurrencies and crypto assets to quasi-mainstream financial assets, we're dedicated to providing quality, relevant, and interesting material on cryptocurrencies and cryptoassets. Articles on Bitcoin, Ethereum, Ripple, Cardano, and many more cryptocurrencies and cryptoassets can be found on Pennies and Pounds - all that in addition to a plethora of information on what cryptoassets are, how the entire crypto industry came to be, blockchain/immutable ledger technology, mining, proof of work, proof of stake, and how to prudently invest in crypto if you are so inclined (based on your risk tolerance and ability to withstand the volatility that will come with a crypto portfolio).  

Terms and Conditions - Please Read Them Carefully
Pennies and Pounds | Copyright © 2018
Photo used under Creative Commons from Ivan Radic