We noticed that our post on savings seemed to be a popular one, so we thought we’d start another discussion on money and investing. Today we’re wondering, dear readers, about your emergency funds: how did you calculate the amount, how do you store it, and how often do you reevaluate the amount and the storage situation? (Pictured: Comme des Garcons Large Zip-Around Wallet, available at Saks.com for $325.)
A caveat, at the beginning: we are not experts in financial advice.
The emergency fund, though, is one of those basic topics that you read about. If you’re in debt, they say, save for your emergency fund first, and then begin paying off debt. If you’re not in debt, they say, save for your emergency fund — and keep it liquid — before you start investing in the market. The emergency fund is supposed to be there as a a cushion in case you or your spouse lose your job, or if some other emergency comes up, such as medical needs or a car accident.
OK, so, fine — great. But how much is it? Some say to figure out six months of living expenses — your mortgage or rent, your school loans, your basic food and living needs — and to bank that. Others say to figure out what your salary is for six months (the higher of two, if there are two) and just save that amount. (We’re guessing the after-tax amount?) Which calculation do you use? In the recession, have you tried to build up more than six months of living expenses? (We have a few good friends who’ve been out of work for more than six months, so it isn’t the worst idea.)
Once you have it, where do you stash it? It should be fairly liquid, so the stock market isn’t the right place for it. But do you go for a high-interest savings account? Do you have them in rolling treasury bills? Do you put them in a series of 6-month CDs, designed to give you access to some of your cash once every month or so? We always used to have them in Schwab money market funds — which at one point had an interest rate as high as 7%, we believe — but it’s now gone down to a sub-one percent interest. We’ve recently found a savings account (using the tools described in this recent NYT blog column) that had about 1.8% interest (through Capitol One), but that’s already down to 1.60%. We suppose this raises another question: How often do you reevaluate your savings vehicle?
Another option for the emergency fund is cash — we’ve heard tales of people burying up to $10K in cash in their backyard in order to have quick access to it should there be some catastrophe in which banks and so forth are not working — does anyone do that?
There are no right answers here, and we’re curious as much as you guys. What’s your take on the emergency fund?
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- One of our favorite fashion blogs has a new monthly feature: editorial items under $50. Fun! [The Daily Obsession]
- Very interesting profile of the current White House social secretary: the stylish Desiree Rogers, descendant of a voodoo priestess with unparalleled connections in Washington. [WSJ Magazine] Incidentally: The Obamas have a Flickr account? Awesome. [The Daily Obsession]
- The sisterhood of female lawyers: will it crumble as more women become bosses? [WSJ Law Blog] Similarly: is the recession good for female lawyers? [Above the Law]
Liking these posts? Follow Corporette on Twitter — this is the edited version of what we’re reading! (We also Tweet if we hear about a good sale.)
Jeri rounds up some seriously cute post-it notes. [Jeri's Organizing & Decluttering News] (Our $.02: We wouldn’t recommend handing your boss a Post-It note with, say, a squirrel on it. But if you’re just writing notes for yourself, knock yourself out. Otherwise, you may want to limit yourself to private fun, like the Post-It dispenser at right.)
Have you found yourself being derailed by other women in the office? [WSJ: The Juggle]
A new Blackberry is designed to be easier on your thumbs. [WSJ]
A lot is written about women’s workplace fashion gaffes — it seems rarer to hear about men’s. Accordingly, it’s very interesting to see MSM weigh in on our new president’s fashion sense at the office. [Racked] The NYT article at the heart of the Racked piece is well worth a read — very interest to compare and contrast Bush and Obama’s work styles. [NYT]
Finally: we’re officially members of the Sarah Haskins fan club with her latest “Target: Women” piece, on Ann Curry. [Current.com] (Actually — IS there an official fan club yet? We must check Facebook.)
Liking these posts? Follow Corporette on Twitter — this is the edited version of what we’re reading! (We also Tweet if we hear about a good sale.)
Have you voted for Corporette yet for best quirky blog? We’d be much obliged if you would! [ABA Journal]
A bargain-hunter’s guide to the galaxy. (We agree with everything Ms. Binkley has to say!) [WSJ]
The NRDC has some great holiday guides (and gift suggestions) for environmentalists. [NRDC]
Oooh, handy: a round-up of holiday shipping deadlines for various online stores. [SheFinds]
If you haven’t checked in with The Simple Dollar’s series, reading and reviewing “the best investing book ever written” – Benjamin Graham’s “The Intelligent Investor” — check it out. [The Simple Dollar]
Finally, for the lawyers out there, what do you guys think of this post? We’re somewhat conflicted about how to feel about it — is he against women? introverts? Are we just being too sensitive? We’d love your thoughts.
Liking these posts? Follow Corporette on Twitter — this is the edited version of what we’re reading! (We also Tweet if we hear about a good sale.)
(At left: This week’s round-up is rather bleak, so we decided to illustrate it with something happy. Cupcakes? Puppies? We ultimately decided to go with the cute guy and the kitty. Check out the video, posted below, if you haven’t seen it before. Hat tip to La Pauline 2.0.)
- Women in BigLaw are hitting their heads on the glass ceiling. [WSJ Law Blog] But then, is it a glass ceiling or a sticky floor? The Downtown Women’s Club Blog rehashed a recent teleclass on the subject. [DWC]
- If you should be laid off, some advice on how to make a graceful exit. [The Thin Pink Line]
- How to order a bespoke suit from overseas. [WSJ]
- Sadie at Jezebel admits a dark secret that others agree with: the wrap dress, long written about as a “classic” that every woman must own, ain’t that flattering. [Jezebel]
- The next time you need to carry files with you (deposition, anyone?) you may want to consider totes like these and these — they’re probably easier to maneuver than a banker’s box. [Jeri's Organizing & Decluttering News]
- The Simple Dollar reviews “The Little Book of Bull Moves in a Bear Market. [The Simple Dollar]
Liking these posts? Follow Corporette on Twitter — this is the edited version of what we’re reading! (We also Tweet if we hear about a good sale.)
- The bloggers over at Feminist Law Profs consider whether a through-the-legs shot is sexist, but honestly all we can think is: who let Hillary hem her pants like that? [Feminist Law Profs]
- Warren Buffett suggests it’s time to stock up on stocks. [NYT]
- Six-inch shoes are apparently “flying off” shelves. (Not into our closets, thank you very much!) [WSJ]
- Marie Claire’s latest money guide is fun — what women spend on purses, what it costs to own a pet and stay tan, and the top secrets of high-earning women. [Marie Claire]
- Nine signs for when it’s time to give your financial advisor the ax. [Wise Bread]
- Lifehacker offers some advice on what to do if you’re locked out of your Gmail account for weeks, as was recently explored in a NYT article. [Lifehacker]
Last week we asked: How has the recession affected your spending and saving habits? Although we’re all peeking through our fingers as we check on our 401Ks and various accounts, the good news is that it hasn’t affected us that much.
46% of voters said they weren’t doing anything differently
28% of voters are looking at these plunging prices as a great time to stock up (ha! ha) on stocks and other investments
13% noted that they’d moved money around so no more than $100K was in one spot at once
9% said they were carpe diem-ing it up and living for today
3% said they were taking money out of their bank and hiding it in pickle jars in their backyard.
Commenters noted that they were trying to take less cabs and eating out less… (same here!) One commenter also noted that she was going to buy a house sooner than anticipated. (You go, girl!)
As always, the poll is still open — if you haven’t voted yet, please go do so! And, just for kicks, if you have a recession-favorite recipe, post it in the comments below…
Okay: it seems safe to say we’re in the midst of a financial crisis. But how is it affecting you? Less cabs? More sleepless nights? More days of “breakfast for dinner“? Take our poll and then weigh in, in the comments… we’re curious!
We noticed that our post on savings seemed to be a popular one, so we thought we’d start another discussion on money and investing. Today we’re wondering, dear readers, about your emergency funds: how did you calculate the amount, how do you store it, and how often do you reevaluate the amount and the storage situation? (Pictured: Comme des Garcons Large Zip-Around Wallet, available at Saks.com for $325.)
(At left: This week’s round-up is rather bleak, so we decided to illustrate it with something happy. Cupcakes? Puppies? We ultimately decided to go with the cute guy and the kitty. Check out the video, posted below, if you haven’t seen it before. Hat tip to 
