The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking about emergency funds, in particular, what emergency funds are and if you should have one. Emergency funds I think are a great idea and concept in the sense that what you’d hear often is that we need to save up somewhere between three and six months of living expenses and put them aside into a liquid checking or savings account to be used in emergency situations. What classifies maybe as an emergency situation? A loss of a job, a car that is maybe wrecked or broke down or you need medical expenses. And I love the idea and the concept of emergency funds, but here's my only rub with emergency funds that I want to talk about today, is that emergency funds in and of themselves are okay, but when you look at them in context of the overall financial picture of most people, what often ends up happening is that people end up saving for these emergency funds which might take them a year, two yea