Comments on: Thirteen Ways To Reduce The Effect Of “Bad Luck” In Your Financial Life http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 19:22:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Friday Finance Findings For October 5th : Generation X Finance http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-82102 Friday Finance Findings For October 5th : Generation X Finance Fri, 05 Oct 2007 16:32:50 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-82102 [...] 13 Ways to Reduce the Effect of “Bad Luck” in Your Financial Life - It is all too easy to discuss finances with broad generalizations, but let’s face it–things don’t always go as planned. We all have times when a string of bad luck can throw even the best plans a curve. Trent has some great tips to minimize the impact of this bad luck. [...] [...] 13 Ways to Reduce the Effect of “Bad Luck” in Your Financial Life – It is all too easy to discuss finances with broad generalizations, but let’s face it–things don’t always go as planned. We all have times when a string of bad luck can throw even the best plans a curve. Trent has some great tips to minimize the impact of this bad luck. [...]

]]> By: MVP http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-81384 MVP Thu, 04 Oct 2007 03:05:29 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-81384 I had to learn the hard way not to speed. I got so many speeding tickets, I could barely afford them anymore. Now I routinely set cruise control at the speed limit, even in town, and I figure I've saved myself hundreds, maybe thousands, in tickets, insurance and gas mileage - not to mention the anxiety! Also, emergency fund, emergency fund, emergency fund. Have one, no matter what your income is. You'll need it eventually, and it'll save you loads of unnecessary stress when that rainy day comes. And it WILL come. I had to learn the hard way not to speed. I got so many speeding tickets, I could barely afford them anymore. Now I routinely set cruise control at the speed limit, even in town, and I figure I’ve saved myself hundreds, maybe thousands, in tickets, insurance and gas mileage – not to mention the anxiety!

Also, emergency fund, emergency fund, emergency fund. Have one, no matter what your income is. You’ll need it eventually, and it’ll save you loads of unnecessary stress when that rainy day comes. And it WILL come.

]]> By: daydreamr http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-81158 daydreamr Wed, 03 Oct 2007 17:19:40 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-81158 I would like to add a safety deposit box to this list. It is a relativley inexpensive way to keep important papers and valuables safe. I am going on my 2nd year of renting one. It didn't sink in until a friend of mine, who's house burnt down, told me that they lost all their important papers. Car title, social security cards, birth cirtificates...They had no way of proving who they were for a good long time. They lost money, valuables like jewelry etc. What a mess. She said that if she could do things over again, she would have spent the money for a safety deposit box and kept important items in it. I would like to add a safety deposit box to this list. It is a relativley inexpensive way to keep important papers and valuables safe. I am going on my 2nd year of renting one. It didn’t sink in until a friend of mine, who’s house burnt down, told me that they lost all their important papers. Car title, social security cards, birth cirtificates…They had no way of proving who they were for a good long time. They lost money, valuables like jewelry etc. What a mess. She said that if she could do things over again, she would have spent the money for a safety deposit box and kept important items in it.

]]> By: Aaron http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-81126 Aaron Wed, 03 Oct 2007 16:00:53 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-81126 I like the idea of building multiple streams of income to protect as well as diversify your revenue stream. Multiple incomes, even if they are rather small, can turn out to be a pretty big deal. I like the idea of building multiple streams of income to protect as well as diversify your revenue stream. Multiple incomes, even if they are rather small, can turn out to be a pretty big deal.

]]> By: Erich http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-81085 Erich Wed, 03 Oct 2007 14:16:42 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-81085 A couple of things that help me avoid the full "cost of bad luck", which I haven't seen mentioned yet: 1. Perform the reccomended regular maintainence on vehicles, appliences, etc. This helps prevent breakdown and helps you notice problems earlier (when they are less expensive to fix). 2. Know basic emergency repairs. If you know how to change a tire, this will save you the cost of a tow truck and let you get to a mechanic quicker. 3. DIY for simple things. In the case of my bicycle, the local bike guy taught me how to fix a flat, true my wheels, etc. Most independant folks will teach you how to do this. In the case of my bike guy, he's busy enough that it's far more time/cost effective for him to teach me how to fix my own simple problems than to fix them and charge me for it, and he would rather not take my money for something I could easily do myself. 4. carry the proper insurance, this can keep you from financial ruin on the high end of problems. Trent has a couple of really good articles about this here. 5. Always run the numbers for the worst case scenario. This lets you mentally prepare, and helps you avoid expensive mistakes when you react to an emergency. It also helps avoid the mentality alluded to in the article "If only bad things wouldnt happen to me, I could do this". Mental preparedness will help keep a pma, and probably help with the bottom line. 6. "Bad luck" is frequently opportunity in disguise. It's a chance to re-think a strategy that failed. Most of the time it will only be a lesson learned and opportunity to grow, but occasionally it can be capitalized into something better. 7. Im a firm believer in karma, if you help people you know in cases of bad luck (not necessarily financially, just a helping hand or even advice when solicited), it will come back as a buffer to your own bad luck. hope this helps someone Erich A couple of things that help me avoid the full “cost of bad luck”, which I haven’t seen mentioned yet:

1. Perform the reccomended regular maintainence on vehicles, appliences, etc. This helps prevent breakdown and helps you notice problems earlier (when they are less expensive to fix).

2. Know basic emergency repairs. If you know how to change a tire, this will save you the cost of a tow truck and let you get to a mechanic quicker.

3. DIY for simple things. In the case of my bicycle, the local bike guy taught me how to fix a flat, true my wheels, etc. Most independant folks will teach you how to do this. In the case of my bike guy, he’s busy enough that it’s far more time/cost effective for him to teach me how to fix my own simple problems than to fix them and charge me for it, and he would rather not take my money for something I could easily do myself.

4. carry the proper insurance, this can keep you from financial ruin on the high end of problems. Trent has a couple of really good articles about this here.

5. Always run the numbers for the worst case scenario. This lets you mentally prepare, and helps you avoid expensive mistakes when you react to an emergency. It also helps avoid the mentality alluded to in the article “If only bad things wouldnt happen to me, I could do this”. Mental preparedness will help keep a pma, and probably help with the bottom line.

6. “Bad luck” is frequently opportunity in disguise. It’s a chance to re-think a strategy that failed. Most of the time it will only be a lesson learned and opportunity to grow, but occasionally it can be capitalized into something better.

7. Im a firm believer in karma, if you help people you know in cases of bad luck (not necessarily financially, just a helping hand or even advice when solicited), it will come back as a buffer to your own bad luck.

hope this helps someone
Erich

]]> By: Rob in Madrid http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-81028 Rob in Madrid Wed, 03 Oct 2007 10:44:27 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-81028 I second the motion on the emergency fund. It makes all the difference in the world. I would add as well to get used to spending less and saving money each week. That in it's self will go a long ways in mitigating the damage of something going wrong at the worst time. By being used to spending less really helps when money is tight, you don't feel the urge to "what the hell the budget is shoot anyways" feeling that makes things worse. Lastly I would add for those that still have debt and don't have much of an emergency fund is to minimize the damage. One of the downsides to living overseas is you usually are the one who travels to visit family. In this case my Mom passed away a few weeks before we were planning on going home Basicly we were faced with two expensive trips back to back. We couldn't cancel the second one as it was for a wedding and the flights were paid for. Also being peak travel season meant we couldn't get cheap flights. Basically it blew a 5000€ hole in the budget, plus the cost of another trip home 6 weeks latter. Thankfully we had already started an emergency fund and had gotten used to having cash in the bank (as vs credit card limit free) which really cushion the damage. But it still left us 4000€ short. For that I arranged a short term low interest loan from the bank to cover it until my Wife got her annual bonus (it's not free money it represents a year of hard work - next year it goes to the house fund first time for that). Previously we would have used CCs etc to cover everything. This time we had cold hard cash to draw on. It was a nice feeling. We also decided that when she gets her bounus we pay the loan off and the rest goes in the bank towards an emvergency fund. That and any extra money from our budget will go there as well rather than going to debt as planned. For debt we'll just let our debt snowball run. Again let me add thank you so much for all the work that you put into making this blog happen. It's really helped us alot in changing how we handle money and has saved our bacon several times over the last six months. I'm looking forward to the day I can email you and tell you that we're debt free! Keep up the good work! I second the motion on the emergency fund. It makes all the difference in the world. I would add as well to get used to spending less and saving money each week. That in it’s self will go a long ways in mitigating the damage of something going wrong at the worst time. By being used to spending less really helps when money is tight, you don’t feel the urge to “what the hell the budget is shoot anyways” feeling that makes things worse.

Lastly I would add for those that still have debt and don’t have much of an emergency fund is to minimize the damage.

One of the downsides to living overseas is you usually are the one who travels to visit family. In this case my Mom passed away a few weeks before we were planning on going home Basicly we were faced with two expensive trips back to back. We couldn’t cancel the second one as it was for a wedding and the flights were paid for. Also being peak travel season meant we couldn’t get cheap flights. Basically it blew a 5000€ hole in the budget, plus the cost of another trip home 6 weeks latter. Thankfully we had already started an emergency fund and had gotten used to having cash in the bank (as vs credit card limit free) which really cushion the damage. But it still left us 4000€ short. For that I arranged a short term low interest loan from the bank to cover it until my Wife got her annual bonus (it’s not free money it represents a year of hard work – next year it goes to the house fund first time for that). Previously we would have used CCs etc to cover everything. This time we had cold hard cash to draw on. It was a nice feeling.

We also decided that when she gets her bounus we pay the loan off and the rest goes in the bank towards an emvergency fund. That and any extra money from our budget will go there as well rather than going to debt as planned. For debt we’ll just let our debt snowball run.

Again let me add thank you so much for all the work that you put into making this blog happen. It’s really helped us alot in changing how we handle money and has saved our bacon several times over the last six months. I’m looking forward to the day I can email you and tell you that we’re debt free!

Keep up the good work!

]]> By: Banban http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80950 Banban Wed, 03 Oct 2007 06:33:49 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80950 Thanks, Trent! I wish more people would learn from this post, especially the advice on emergency funds. My friend's mother has always been living a tragic and "unlucky" life...or so we thought, until we saw how she spends her money. She almost has a six figure income, but spends like a millionaire -- driving luxury cars, gambling, and shopping to excess. So when an emergency comes up, she has nothing to help her out of it. So she always comes to us with sob stories of how desperate and tragic her life is. Thanks, Trent! I wish more people would learn from this post, especially the advice on emergency funds.

My friend’s mother has always been living a tragic and “unlucky” life…or so we thought, until we saw how she spends her money. She almost has a six figure income, but spends like a millionaire — driving luxury cars, gambling, and shopping to excess.

So when an emergency comes up, she has nothing to help her out of it. So she always comes to us with sob stories of how desperate and tragic her life is.

]]> By: FinanceAndFat http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80874 FinanceAndFat Wed, 03 Oct 2007 02:56:15 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80874 I totally agree with starting small on the emergency fund. My first transfer was only $50, but after some time I've reached that magical $1000 level recommended by Dave Ramsey. And good idea on the dual flash drives. I need to get a couple of the 2-4GB size. By the way, I had to spend about 15 minutes on the phone with WellsFargo to set up overdraft protection on my checking account, which I thought I had set up when I opened the account (somehow it wasn't added even though I requested it). Their deal is really bad compared to ING, but it is at least better than nothing and getting hit with a $34 fee. I totally agree with starting small on the emergency fund. My first transfer was only $50, but after some time I’ve reached that magical $1000 level recommended by Dave Ramsey.

And good idea on the dual flash drives. I need to get a couple of the 2-4GB size.

By the way, I had to spend about 15 minutes on the phone with WellsFargo to set up overdraft protection on my checking account, which I thought I had set up when I opened the account (somehow it wasn’t added even though I requested it). Their deal is really bad compared to ING, but it is at least better than nothing and getting hit with a $34 fee.

]]> By: Joe http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80869 Joe Wed, 03 Oct 2007 02:52:43 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80869 Good advice and great starting point to get people thinking. Problem is life can slap people around in ways that aren't expected. Having kids that have accidents, diseases and ongoing care can quickly suck the financial life force from someone. Some people would say, "Get insurance." However insurance can't cover everything, we have one child that needs ongoing care that is non-conventional so no insurance will cover it and it runs approx. $300/month, not huge but it is $300/month that could be put to other uses. On the backup issue I went one further to setup up a cheap machine at a relatives house in another state that I backup to. We've opened the SSH port which is extremely secure (no successful hacks in over 4 years) and offers me complete offsite backups. For about $200 you can buy new equipment to do the same (NSLU2 and an external hdd). To make it an even 15 I might add what I'd consider to be even more important than the ones in your list. Exercise Eat Properly Start a small garden and learn how to raise fruits and veggies for maximum nutrition and you would cover both :) Good advice and great starting point to get people thinking.

Problem is life can slap people around in ways that aren’t expected. Having kids that have accidents, diseases and ongoing care can quickly suck the financial life force from someone. Some people would say, “Get insurance.” However insurance can’t cover everything, we have one child that needs ongoing care that is non-conventional so no insurance will cover it and it runs approx. $300/month, not huge but it is $300/month that could be put to other uses.

On the backup issue I went one further to setup up a cheap machine at a relatives house in another state that I backup to. We’ve opened the SSH port which is extremely secure (no successful hacks in over 4 years) and offers me complete offsite backups. For about $200 you can buy new equipment to do the same (NSLU2 and an external hdd).

To make it an even 15 I might add what I’d consider to be even more important than the ones in your list.
Exercise
Eat Properly
Start a small garden and learn how to raise fruits and veggies for maximum nutrition and you would cover both :)

]]> By: Mrs. Micah http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80858 Mrs. Micah Wed, 03 Oct 2007 02:17:46 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80858 I knew a family with that kind of thing happening. They also had no control over other areas of their life...no savings no nothing. Not much intelligence, either, my mom had to save them from a few clear ripoffs. I knew a family with that kind of thing happening. They also had no control over other areas of their life…no savings no nothing. Not much intelligence, either, my mom had to save them from a few clear ripoffs.

]]> By: Steven http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80842 Steven Wed, 03 Oct 2007 01:31:46 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80842 Good list! I have a couple of comments. Re: overdraft, I'd suggest getting your checking and savings accounts linked for overdraft purposes. If you overdraft your checking, money gets transferred from savings to cover it (assuming you have $$$ in your savings). There's usually a fee, but it beats the bounced check fee(s). Re: paying bills on time, check into electronic bill payment. I don't write physical checks any more - everything is done electronically. You have finer control, and you can be reminded of upcoming bills. Good list! I have a couple of comments.

Re: overdraft, I’d suggest getting your checking and savings accounts linked for overdraft purposes. If you overdraft your checking, money gets transferred from savings to cover it (assuming you have $$$ in your savings). There’s usually a fee, but it beats the bounced check fee(s).

Re: paying bills on time, check into electronic bill payment. I don’t write physical checks any more – everything is done electronically. You have finer control, and you can be reminded of upcoming bills.

]]> By: Susy http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80813 Susy Wed, 03 Oct 2007 00:03:27 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80813 Sounds like we have the same relative!!! Sounds like we have the same relative!!!

]]> By: Amanda http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80809 Amanda Tue, 02 Oct 2007 23:56:25 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80809 I think one of Trent's one main points is that there ARE things you can do to reduce the effect of bad luck, no matter how much you might complain about the situation you're in. If you're in a bad situation, do more than sit and gripe about it. Take practical steps to make your life better. THAT is a great takeaway lesson. Thanks, Trent! I think one of Trent’s one main points is that there ARE things you can do to reduce the effect of bad luck, no matter how much you might complain about the situation you’re in.

If you’re in a bad situation, do more than sit and gripe about it. Take practical steps to make your life better.

THAT is a great takeaway lesson. Thanks, Trent!

]]> By: Ryan http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80806 Ryan Tue, 02 Oct 2007 23:38:14 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80806 I don't think Trent was implying the cars know what the speed limit is. He meant that cars are made to be most efficient at around 45-60 MPH. That's why highway fuel efficiency is better than the city's. I don’t think Trent was implying the cars know what the speed limit is. He meant that cars are made to be most efficient at around 45-60 MPH. That’s why highway fuel efficiency is better than the city’s.

]]> By: Mariette http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80799 Mariette Tue, 02 Oct 2007 23:14:33 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80799 Flash drives are limited in their memory capacity, so they are only good if you are only backing up important documents. If you have lots of photos and music that you want to backup as well then you are, in fact, better off getting and 80-100G regular USB or Firewire drive for your backing up. Flash drives are limited in their memory capacity, so they are only good if you are only backing up important documents. If you have lots of photos and music that you want to backup as well then you are, in fact, better off getting and 80-100G regular USB or Firewire drive for your backing up.

]]> By: Peter http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80794 Peter Tue, 02 Oct 2007 23:10:29 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80794 Flash drives are also more reliable than hard drives due to them not having any moving parts. Flash drives are also more reliable than hard drives due to them not having any moving parts.

]]> By: Sean http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80791 Sean Tue, 02 Oct 2007 22:58:57 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80791 Danny, I disagree with buying multiple external hard drives for purposes of backing up your files. Unless you're doing video or photo editing, that's way overkill. Reliable external hard drives aren't cheap; flash drives are, and they have more than enough storage space than most people need. Danny, I disagree with buying multiple external hard drives for purposes of backing up your files. Unless you’re doing video or photo editing, that’s way overkill. Reliable external hard drives aren’t cheap; flash drives are, and they have more than enough storage space than most people need.

]]> By: Eric http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80789 Eric Tue, 02 Oct 2007 22:57:19 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80789 Trent, This is great advice. You have a couple of things on here which I think of as low probability, high impact events. Having your identity stolen, getting a major traffic violation, or dying prematurely are all things that have varying probabilities (speeding ticket>premature death), but their respective impact is much greater than their probability. Preparation truly is the best way to take out the, "what terrible luck I have" factor. Trent,
This is great advice. You have a couple of things on here which I think of as low probability, high impact events. Having your identity stolen, getting a major traffic violation, or dying prematurely are all things that have varying probabilities (speeding ticket>premature death), but their respective impact is much greater than their probability.

Preparation truly is the best way to take out the, “what terrible luck I have” factor.

]]> By: Minimum Wage http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80786 Minimum Wage Tue, 02 Oct 2007 22:55:01 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80786 I checked out ING Direct's overdraft protection and it has no fees and a reasonable interest rate. I checked out ING Direct’s overdraft protection and it has no fees and a reasonable interest rate.

]]> By: Debt Free Revolution http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/comment-page-1/#comment-80766 Debt Free Revolution Tue, 02 Oct 2007 22:32:34 +0000 http://www.thesimpledollar.com/2007/10/02/thirteen-ways-to-reduce-the-effect-of-bad-luck-in-your-financial-life/#comment-80766 Trent, while I wholeheartedly agree with having an emergency fund, I have to disagree with "overdraft protection" on the checking account. Most overdraft "protections" today are nothing more than high interest loans from the bank along with associated fees. A much better idea is to keep a "threshhold" minimum amount in the checking account. For my account it is $250. This is in addition to the emergency fund. Why so much? My emergency fund is in a money market account, and checks state on them "not valid for less than $250." Trent, while I wholeheartedly agree with having an emergency fund, I have to disagree with “overdraft protection” on the checking account. Most overdraft “protections” today are nothing more than high interest loans from the bank along with associated fees. A much better idea is to keep a “threshhold” minimum amount in the checking account. For my account it is $250. This is in addition to the emergency fund. Why so much? My emergency fund is in a money market account, and checks state on them “not valid for less than $250.”

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