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[quote=Anonymous][quote]I have 20K.

I feel secure having less than 6-8months of living expenses because I am a fed employment lawyer. I am good at my job. I tend to think that I am probably as secure in my employment as anyone could possibly be. [b]Does anyone else take into account the actual likelihood of emergency when deciding what amount is best for an emergency fund? [/b]

(I also have healthy retirement accounts, college funds, etc. I just do not feel the need to keep a lot of liquid cash.)[/quote]

How can you take into account the "actual likelihood of an emergency?". The idea is to have this money available if something catastrophic and unexpected happens.  Job loss is one thing, and we can weigh the relative likelihood of that, and we can insure against some possibilities like the house burning down, but at the same time, catastrophic illness, disability, accidents, etc just happen, often with no advance warning.  Example: One of my children got a devastating medical diagnosis last year, completely out of the blue.  I ended up staying out of work for an entire year caring for my child in hospitals & at home.  A year of lost income + enormous medical bills and related expenses (and we do have good insurance!) = huge, unexpected financial burden.  Accumulated sick leave will only get you so far in that situation, and it became easy for me to see how people who live paycheck to paycheck could quickly lose everything in those circumstances.  This kind of emergency seems unlikely - until it happens to you. [/quote]

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