Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says – Jan. 19, 2014

dave says2 300KENTUCKY (1/19/14) – This week Dave discusses A squirrel fund and Emergency fund in bonds?

Dear Dave,
My husband works construction, so we barely scrape by during the winter months. Should we build an emergency fund for the slow times? - Cathy

Dear Cathy,
I think that’s a great idea. Although, I’d probably call it something other than an emergency fund. How about a squirrel fund? Squirrels need to have nuts saved up for winter, and in your case you’d be setting money aside during the summer to get you through the slow winter months.

You may think I’m playing games with the name, but really I’m not. This sort of saving isn’t for emergencies. It’s a budget issue, because you’re planning and setting aside cash leading up to the down time you know is coming. Keep your emergency fund of three to six months of expenses separate from this, and take a careful look at what he made this winter and how much that left you short each month.

Remember, we’re not talking about some random amount of money here. It’s an exact amount that you can budget for accordingly. Teachers can do the same thing if they’re not paid 12 months a year. It’s a simple matter of planning ahead for the down time, and setting aside enough during the other nine months to see you through! - Dave

Dear Dave,
What do you think about the idea of putting your emergency fund into bonds? - Ryan

Dear Ryan,
I think that’s a really bad idea, and here’s why. Bond values and prices go down as lo2ng-term interest rates rise. Right now, long-term interest rates—a good example would be mortgage rates—are ticking up. They’ve moved up a quarter of a percent recently. So, as this happens, the value of bonds goes down. If these interest rates spiked, you could lose half your emergency fund.

Never, ever put your emergency fund into things where risk and volatility are factors. An emergency fund isn’t an investment. It’s there to help protect things that are investments and your life. Keep it in something safe and simple, like a money market account where there’s no penalty for early withdrawal.

We’re not looking to make money with an emergency fund, Ryan. It’s insurance. Just let it sit there, safe and sound, until it’s needed. - Dave

*Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at www.daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessari-ly adhere to or endorse content provided by outside non-staff sources.

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Posted on 2/2/14

SurfKY TV

2/6/2014 - posted

Stock Report

1 DOW 17,124.70
+150.39 (0.89%)    
2 S&P 1,989.02
+6.72 (0.34%)    
3 NASDAQ 4,550.62
+1.40 (0.03%)    
2/6/2014 - posted
2/6/2014 - posted

In Other News...

Gov. Beshear Breaks Ground on Aleris Corporation's $350 Million Expansion in Lewisport

LEWISPORT, Ky. (10/29/14) — Governor Steve Beshear today joined company officials and local leaders to break ground on… Read More

Water Main Break Sends Stream Dozens of Feet in Air

MADISONVILLE, Ky. (10/29/14) — A water line break on North Main Street in Madisonville Wednesday sent Madisonville… Read More
2/6/2014 - posted

Most Read This Week

October 29, 2014 8719

UPDATE: Medical Examiner's Official Report…

in Local (Lakes) Top News by Dennis Thomas
October 24, 2014 7475

Central City Man Charged with Sexual Assault on…

in Local (Muhlenberg) Top News by Chris Cooper
October 27, 2014 6016

Earlington Woman Charged With Burglary for…

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 4413

Don Everly to be Part of Rock and Roll Hall of…

in Top News For All Sites by Paul McRee, SurfKY News
October 27, 2014 4303

Baptist Health Madisonville Performs Baptist…

in Local (Hopkins) Top News by Kristy Quinn
October 28, 2014 3901

UPDATE: 'Runner' Ran Home; Family Happy

in Hopkins News by Lisa Crook
October 29, 2014 3790

UPDATE: Two More Arrested for Meth at Area Motel

in Local (Hopkins) Top News by Trooper Stu Recke
October 24, 2014 3789

Miners Turn Out in Madisonville for…

in Top News For All Sites by Rita Dukes Smith, SurfKY News Director
October 27, 2014 3279

Woman Charged for Domestic Assault with Scissors,…

in Local (Hopkins) Top News by Madisonville Police Department
October 28, 2014 3262

UPDATE: Extended to Wednesday; Heaven's Gates and…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News

Stories Trending Today

October 29, 2014 8719

UPDATE: Medical Examiner's Official Report…

in Local (Lakes) Top News by Dennis Thomas
October 29, 2014 3790

UPDATE: Two More Arrested for Meth at Area Motel

in Local (Hopkins) Top News by Trooper Stu Recke
October 29, 2014 2436

Hypodermic Needle Sticking Out of Jacket During…

in Local (Hopkins) Top News by Madisonville Police Department
October 29, 2014 2131

Pennyrile Gymnastic Team to Perform on 'America's…

in Local (Hopkins) Top News by Paul McRee, SurfKY News
October 29, 2014 1828

Madisonville Police Arrest Reports - Oct. 29, 2014

in Hopkins News by Madisonville Police Department
October 29, 2014 1761

Huge Crowds Visit Uncle Lee’s First Day of…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 29, 2014 1481

Trespassing Complaint Ends with Shoplifting Arrest

in Hopkins News by Madisonville Police Department
October 30, 2014 1406

UPDATE: Missing Elderly Couple Found

in Local (Hopkins) Top News by Chief William C. Crider
October 29, 2014 1238

Water Main Break Sends Stream Dozens of Feet in…

in Hopkins News by Rita Dukes Smith, SurfKY News Director
October 29, 2014 1099

Greenwood Indicted by Logan County Grand Jury

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss