Emergency Fund - How Much?

[Tukaram (Tim)]

 

One way to keep your credit rating up is to allow a balance to carry forward at statement time. Then pay off what the STATEMENT BALANCE was. For example, you have a $200 statement balance but $300 charged to the card. You pay the statement balance after the new period starts and no interest is charged. This shows activity but also keeps your credit rating up.

Are your credit card companies that crazy, judge credit rating after ACTIVITY at a CREDIT card???

In Sweden credit rate depend of

1. having no remarks of failing to pay bills

2. income

3. allready approved credits REDUCE the credit rate left

 

 

I think it is just a way to show activity on the card.  I have tons of available credit but my rating has dropped - a lot - in one year from inactivity.

[jon1]

I think that terms are confusing people. Several factors affect individual's credit scores. One factor is the amount an individual borrowed/used as compared to the amount of credit available to the individual. As an individual borrows, or leverages, more money, the individual's credit score decreases. I do believe that income has a lot to do with it. If you have less income and are using less of your credit, your credit LIMIT will drop to avert the risk of you defaulting on a higher debt. As your limit drops so will your rating.

 

I am not a banker, nor a professional on credit. I use it as needed and haven't experienced the drop yet that Tuka has. I do however, have had a good income the last 7 years which is coming to a halt. The activity and paying off the balance is a way to maintain your credit worthiness. I also plan on moving a lot of my money into the Credit Union that has my credit card in the hopes of maintaining what I have. Another advantage that I have is zero debt. So that may also help me maintain the high limit on my card.

[BrettGC]

Are your credit card companies that crazy, judge credit rating after ACTIVITY at a CREDIT card??? In Sweden credit rate depend of 1. having no remarks of failing to pay bills 2. income 3. allready approved credits REDUCE the credit rate left

 

Same in Australia, your frequency of use has nothing to do with credit rating.  It's all about ability to pay combined with history good or bad.  Admittedly you're not going to get a housing loan if you've never borrowed or have some history but non-activity does not reduce your rating here.  Sounds like credit companies in the US colluding to make people spend to accrue interest - but I guess if that's the norm what can you do?  

 

Edit: I'm going to ask some of my US students about this in case I have the wrong end of the stick on this; No Jake, I'm no longer managing the adult shop!  Lecturing in Social Work Practice and Theory and Intro to Sociology :D.  Finally finished the damned Masters!

Edited April 9, 2014 by BrettGC

[Jake]

Master BrettGC, 

 

I believe at a bare minimum, at least 3 months of your monthly income should be placed in reserve.  

Let's talk about types of emergency.  If you survived a catastrophic failure of all public infrastructure 

during a super typhoon, earthquake or any man made calamities that devastated your area, your

plastic cards may not work at all.  Not to mentioned most, if not all the banks will be closed or long

lines of desperate people trying to get cash.  And I'm just talking about surviving here in California.

 

Medical and accidental insurance like Philippines Blue Cross should be seriously considered.  Thanks

to MikeB's story of his survival from a serious motorcycle accident a couple years ago, having medical

insurance was his saving grace.  

 

I would also suggest getting to know where your nearest consulate or embassy is located.  It would be

a nice warm and fuzzy feeling having your own flag taking care of you within the sanctions of their walls.

 

If all else fails, I should have enough time to bend over and kiss my ass goodbye......he, he.

Edited April 9, 2014 by Jake
spil chek

[Tukaram (Tim)]

In the US I was a poor sailor, then a single dad.  I never had savings.  ANY ha ha.  My sister was shocked I did not have 6 months salary in savings and I told her she had been a doctor too long and forgot about growing up poor.  No one I knew but her had any real savings.  We were all paycheck to paycheck and usually a paycheck behind.  Now I am unemployed, so again no real savings.  I have a few thousand dollars from selling my house... but even that is not much.  Got a couple IRA's and a 403b I could cash in if it was a dire emergency...

 

And if there is a medical emergency I can put it on credit, borrow from my US family, or die.  Such is life.  Nothing worth worrying about. 

[i am bob]

I guess I am one of the few doing things this way... Of course, I am keeping my private medical insurance. The only real difference is that the hospital itself is not covered. Hmmm... PhilHealth will cover that difference. And, if not? I have over $20k in credit available (MasterCard, account overdraft and a line of credit) which was obtained with s notation on the accounts to Not be reduced as these are my emergency funds once I am in the Philippines. One last thing I want o do... I want to live on a budget of $1000 CDN (about P40,000) per month. And, just in case that won't work out for me? My pension is about twice that. So, on the long run, I guess I'm going to be covered.

Sent by using a very long piece of string, a couple tin cans, 2 gaseous monkeys, Tapatalk and my Nexus 4

[MikeB]

The only real difference is that the hospital itself is not covered. Hmmm... PhilHealth will cover that difference.

Unless you're classified indigent, PhilHealth provides a deduction that comes off your bill before any other insurance is involved. I've used it twice and the benefit was about 10-12% of the total bill. The amount can differ depending on procedures. But 40% of that goes directly to the doctor before it's deducted from your bill so the actual deduction is less. In theory, the doctor should deduct that amount from his or her services.

[BrettGC]

Unless you're classified indigent, PhilHealth provides a deduction that comes off your bill before any other insurance is involved. I've used it twice and the benefit was about 10-12% of the total bill. The amount can differ depending on procedures. But 40% of that goes directly to the doctor before it's deducted from your bill so the actual deduction is less. In theory, the doctor should deduct that amount from his or her services.

 

Good to know Mike.  I'm only just now investigating the vagaries of PhilHealth and am quickly learning it's not exactly what it first appears to be.

[sjp52]

 

Unless you're classified indigent, PhilHealth provides a deduction that comes off your bill before any other insurance is involved. I've used it twice and the benefit was about 10-12% of the total bill. The amount can differ depending on procedures. But 40% of that goes directly to the doctor before it's deducted from your bill so the actual deduction is less. In theory, the doctor should deduct that amount from his or her services.

 

Good to know Mike.  I'm only just now investigating the vagaries of PhilHealth and am quickly learning it's not exactly what it first appears to be.

 

My wifes father just got out of the hospital yesterday. Total bill 13,000 pesos. Phil Health deduction 5000 pesos. Amount I paid 8000.

[stevewool]

It seems we are worried about what we should have in our emergency funds,

But your emergency may not be another persons emergency,

All i know for myself and my wife we shall be ok,

We are all saving hard for the future we are hoping that will come our way, so i am sure a good half of that amount will never be touch,will that be the emergency fund, so you start to think why am i saving and working for those extra few years , why not go now,

Its the not knowing and the just in case scenario , you just have to take that plunge