Mainstream personal finance experts advise us to maintain an emergency fund for unforseen negative events in our life. And it should ideally be in the range of 3-6 months of our income/expenses (the wiser ones choose expenses; more on that later). This concept is so important that some of them even advocate that building an emergency fund should take priority over paying off credit card debts (like really?!) But the 15 HWW household, for one, doesn’t believe in having an emergency fund at this stage of our lives. Here’s some reasons why:

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Adequate insurance coverage Most of the emergencies that I can think of that are truly catastrophic tend to be medical-related. Kudos then to those personal finance authors/bloggers who advise their many clueless readers/clients to purchase insurance before even thinking about saving or even investing their monies. And you can get enough coverage without delaying your credit card debt installments since insurance doesn’t have to cost a bomb. ......