Your logic hits my funny bone
Your income is higher and you need a larger emergency fund...huh?
Lol, there's a lot of backstory but it certainly came out as an anti mustachian sentiment. The two are related to significant lifestyle events, but not directly correlated.
We just bought a house, so the stakes are higher if we fail to make ends meet should we both lose our jobs.
Before we were traveling the country for a couple of years in a campervan like vegabonds. Quite an adventure, but definitely not living in a way that is financially secure or productive toward financial independence. Nothing put in tax sheltered accounts, nothing compounding, no growing assets, etc. previously. Cheap lifestyle, but risky for the long term. We're now re-setting and going to be much more proactive for this chapter in our lives... and I just don't know what do do larger chunks of $ aside from a savings account and index funds. I figured there's a good in-between that doesn't fluctuate with the market as much.
Most of my emergency money is with Vanguard Money Market Fund VMMXX at 2.46%.
It links to my checking account and takes a couple of days to transfer.
Excellent! This seems like what I was looking for.
We keep the following:
1mo-2mo in checking.
2mo in high yield money market account with check writing ability.
3mo in 13-week treasuries (rolling 3 mo ladder)
6mo in I-bonds (indexed to inflation)
This provides us a lot of flexibility. Half is being indexed with inflation - so we don't have concerns about losing buying power. 9 mo is available at nearly a moment's notice and I can sell the other 3 mo on the open market if I really need to.
We sleep well at night.
Intimidating at first, but very straightforward. Thanks!
