Resolve to make 2016 the year of the Emergency Fund.

What’s in your emergency fund? Do you have cash on hand to get your through unexpected lean times?

Rob Carrick over at the Globe and Mail think’s it’s time to focus on building your emergency fund in 2016.

Now seems an opportune time to return to the emergency fund theme. The Bank of Canada indicated last week that it would consider using negative interest rates, an extraordinary measure already in use in some European countries, if the economy worsens significantly. Governor Stephen Poloz believes the makings of a recovery are in place, and he doesn’t expect to have to resort to negative rates. And yet, oil prices last week hit their lowest point in six years.

I took a look at our household emergency fund recently and decided we needed to up our game. How about you?

Definition of an emergency fund: Money sitting in a high-interest savings account at a bank or credit union. These accounts are insulated from the ups and downs of the stock and bond markets, and easily accessible online. Interest rates are pitiful on these accounts, but the emphasis is on safety over returns.

Read the full article here.

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paulb
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http://www.paulboenisch.com

Hçistory
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Hçistory

I have the majority of my liquid investments in a consumer discretionary company, trading at Negative Beta to the SPX, current EPS over $3.00/per share, 7mil share float. This is what I got! Squillinaire acres here I come! And if not, so what? No debt History… with plenty of cash banked that no F%cktard landlord hopes to get his hands on…

Shut It Down Already
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Shut It Down Already

7k partyyyyyyyy!!!!!

Shut It Down Already
Guest
Shut It Down Already

Why have an emergency fund when you’ve already secured easy access to credit for if you need it?

Oracle
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Oracle

Have a huge emergency fund.

Problem is I don’t want to put it into a house. Dead money.

Want to buy a house but with 5% down only and in name of corporation so if things go south, then Corp can declare bankruptcy.

What are the laws in Alberta? Can you walk away from a house if you have a huge emergency fund ?

StupidityCheck
Guest
StupidityCheck

ShutItUpAlready,

Using your equity for a line of credit because you have no other savings? What could go wrong?

Shut It Down Already
Guest
Shut It Down Already

8, check yourself. You’ll find many people advise against having an emergency fund if you’re got a solid credit score. It’s a wasted opportunity keeping the cash on hand. You’re better off investing it, and using credit to cover the 2-3 days it might take to liquidate and access the funds.

Whistler or bust?
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Whistler or bust?

3,4,7

Why do you come here? You offer nothing but like to piss people off.

Shut It Down Already
Guest
Shut It Down Already

Whistler or bust, my comments on this thread so far have been infinitely more productive than yours. I’m on-topic talking about emergency funds, and you’re pointlessly attacking other posters. So why do you come here?

Oracle
Guest
Oracle

Fact:

Those that try to ridicule others are auffering in one way or another in their own lives.

So for those that are offended when someone posts a belittling post is to remember the fact above. A person truly happy will never post something to try to ‘hurt’ someone else.

southseacompany
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southseacompany

“CREA worries Ottawa’s new mortgage rules will dampen home sales in 2016”, Financial Post

http://business.financialpost.com/personal-finance/mortgages-real-estate/even-realtors-caught-off-guard-by-strength-of-canadian-housing-numbers-this-year

“The Canadian Real Estate Association is raising concerns that new mortgage rules announced by Ottawa last week could dampen housing sales next year.”

southseacompany
Member
southseacompany

“Bank of Canada says housing, debt threaten financial system”, CBC News

http://www.cbc.ca/news/business/stephen-poloz-economic-forecast-1.3365774

“Household indebtedness and imbalance in the housing sector are key vulnerabilities to Canada’s financial sector, the Bank of Canada says in a financial system review.”

“Specifically, the central bank is worried about young people who have taken on high levels of debt so they can buy homes in expensive markets.”

“”Household vulnerabilities could be exacerbated by a severe recession that is accompanied by a widespread and prolonged rise in unemployment,” the central bank said in a news release.”

“”This could reduce the ability of households to service their debt and cause serious and broad-based declines in house prices.””

southseacompany
Member
southseacompany

“Unemployment Spike Worst-Case Scenario for Canada Housing: Rudin”, Bloomberg with video

http://www.bloomberg.com/news/articles/2015-12-15/unemployment-spike-worst-case-scenario-for-canada-housing-rudin

“”The most severe scenario would be a severe disruption to employment, which then interrupts the ability of borrowers to stay current on their mortgages, combined with a resulting decline in the value of the collateral,” Jeremy Rudin, head of the Office of the Superintendent of Financial Institutions said”

“”The more severe that decline is in prices, the more severe the scenario will be.””

bullwhip29
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bullwhip29

@ #12

the fact is that most cdns have little or no savings (other than their homes) to fall back on in a time of prolonged emergency. racking up the visa or tapping a line of credit doesnt count

this is precisely why the powers that be will ultimately keep things relatively loose and easy for way longer than most want or believe. there is no easy out

for those that have extra cash burning a hole in their wallets, why not load up on even more real estate? you cant lose…
http://www.incometrustone.com/

as if there was any doubt that it’s all about RE 164% of the time in vancouver, guess what vancouverites googled the most in 2015?

Bull! Bull! Bull!
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Bull! Bull! Bull!

anyone want to draw a graph of the inventory draw down? you guys used to be so into graphs, ‘battle maps’, stats, etc. how come you stopped?

elvince
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elvince

With 164% debt/income ratio, keeping a rainy day fund doesn’t make any sense. It’s raining TODAY!

j/k, but really, keeping a couple grands for 0.75% (taxable) interest makes no sense if you’re paying 2.2% on a mortgage (or worse, any other kind of loan). Throw the cash at your mortgage and make sure you can withdraw on a HELOC if bad comes to worse. If you end up never needing the funds, then you’ve been better off, and if you end up needing it at some point, then you’ll have saved that much in interest in the meantime.

Carrick is usually a smarter cookie than that.

Oracle
Guest
Oracle

@Bull:

So true. The people that drew those maps didn’t realize the influence of HAM. Vancity RE is 100% supported by HAM inflows and temp/perm immigrants.

With 10,000 refugees coming in and gov now saying they will pay anything to house them, watch rents skyrocket here in Vancouver. The map makers will probably deny this too.

elvince
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elvince

7k party!!!! But by all means, let’s talk about chinese submarines or the fucking weather.

Cat in the hat
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Cat in the hat

Can anyone guess how low the CAD goes. 2 SFHS to a loaf of bread?

It has gone from 1 to 1.1, to current 1 to 0.72. The US Fed hasn’t made its moves yet, at least not for the next 3 hrs.

Do you see 1 cad buying .65USD in the next year?

say whaaaa?
Guest
say whaaaa?

@19

If that. The talk of negative interest rates being on the table suggests to me that they’ll take it even lower if they feel the need to “bolster exports,” or whatever the particular stated rationale happens to be.

bullwhip29
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bullwhip29
@ #19 mentioned early this year that i saw loonie at 0.65-0.68 in short to medium term (ie. by 2016-17). over the next 5 yrs i highly doubt any relief rallies propel the loonie to any higher than 0.75-0.80 best case. imho canada has been permanently relegated to the minor leagues now with the likes of countries like mexico. the highs made in recent yrs was a generational peak for the loonie. the US goes into full print mode again only if the shtf. when that happens canada is most definitely not going to dodge the bullet again as it will likely mean that china (and probably the US) winds up deep sixing like the japanese did but on a much grander scale. what supposedly worked from 2009-14 won’t be as effective the next time around. as i have also… Read more »
Bull! Bull! Bull!
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Bull! Bull! Bull!

Massey Tunnel to be replaced with B.C.’s largest toll bridge

http://www.cbc.ca/news/canada/british-columbia/massey-tunnel-replacement-bridge-1.3367368

region just keeps growing.

space889
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space889

@bullwhip29 – Really?? Have the last 20 years taught you nothing? When loonie was 65c USD and talk of adopting USD $ was all the rage, how many people thought oil would hit $100 or even $140 and CAD$ would ever get to par? Ever?

When oil hit $100+ and CAD$ went above par, how many though oil would ever hit under $40? or CAD drop to under $0.8USD?

Everything goes in cycle and frankly I wouldn’t be surprised if CAD$ and oil roundtrip back to $90/barrel and $0.9+ USD within 5 to 7 years. But then, a loaf of bread might also cost $5 USD too.

space889
Guest
space889

Ahhh…team BPOM does not disappoint…having no intelligent and useful things to say, they slither back into their holes, only to come out with venom and vile bile in a pathetic attempt to keep themselves relevant.

And I’m sure BPOM will be the first to volunteer & enlist in infantry to fight in a war with the Chinese right? Instead of some far away from the frontlines safety in an office job.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

Canadian start-up sells bottled air to China, says sales booming

http://www.cnn.com/2015/12/15/asia/china-canadian-company-selling-clean-air/

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