I actually regret skipping the emergency fund for a higher savings rate

Last year I was so focused on maxing out my retirement contributions that I let my emergency fund drop to just $500. I was working from a coffee shop in downtown Portland when my laptop died and I needed $900 for a replacement on the spot. Had to put it on a credit card and carried that balance for three months, paying $45 in interest. The extra retirement savings I earned during that time was completely wiped out by the interest and stress. Now I keep six months of expenses in a high yield account before I invest a single extra dollar. Has anyone else had a similar moment where being too aggressive with savings actually set you back?

2 comments

2 Comments

aaron88422d ago

That "laptop dying while working from a coffee shop" part hit hard, so what did you learn about the real cost of risk versus reward?

grayc2722d ago

Did my buddy @aaron884 end up with a dead laptop and a $400 lesson in parking tickets after chasing a "sure thing" freelance gig?