Reply to The balance: saving too little vs saving too much. AND Tesla

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[quote=Anonymous][quote=Anonymous]Your net worth looks good, but your equity is all tied up in retirement accounts and real estate. You do not have a high enough emergency fund to buy a toy like that. Maybe reassess in a few years.[/quote]

I disagree.  What kind of emergency is more than 20k?  And if it's more than 20k (meaning it's a huge emergency) is 100k going to really get you very far?  Probably not.

I think it depends on the monthly fixed expenses and what they can cover out of the monthly cashflow.  For example we bring home around 14k a month and our fixed rxpenses are around 4K.  We can easily cover minor emergencies and repairs out of our paychecks. We also receive a good 100k plus each spring in the form of a bonus and another 15-20k around year end.  I just don't believe in having 100k sitting around unless you have an unstable job.  We can cover our fixed expenses from one spouse's paycheck.  If we both lose our rather secure jobs than we have a huge problem on our hands and we have bigger. problems than a 100k emergency fund will help cure.

Op figure out your monthly expenses.  Also see if you can move to a 15 year mortgage or at least pay like its a 15 year to build up equity. [/quote]

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