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Is Your Emergency Fund Ever “Full?”

Every 2 weeks, I check up on the balance and recent transactions in all of my accounts. For some time now, my emergency savings account has been filling up with it’s bi-weekly deposit. Now I know I’m dooming myself by writing this post, but the question is worth considering. Is there ever a point where your emergency fund is now full? Should you divert that money into a higher-interest bearing instrument like stocks or Prosper? Or should you just keep the money flowing in to further cushion yourself from emergency spending.

As I write this, my ING savings account that houses my emergency fund is fast approaching $2,000. This is due in part from my monthly contributions, but I also like to split up windfalls into spending, investing, and of course emergency savings. Tax refunds, work bonuses, etc. are all split up and allocated accordingly. As such, my emergency fund has flourished over the past 6 months.

From what I read on the PF blogosphere, most people consider a $1,000 emergency fund enough to move on and put that money into other investments. Given that I already have much of my other discretionary income dedicated to paying off debts and investing, I’m not entirely sure it’s necessary to stop funding my emergency savings.

Feel free to agree or disagree!


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