Do doctors need an emergency fund?

There is a lot of talk on the web about having an emergency fund. Typically this is three to six months of expenses. Some would argue to keep three to six times bare bones expenses, and others would argue to keep three to six times the average amount you spend on expenses. Having an emergency fund makes sense to cover life’s unexpected occurrences. What could these be? Well, the biggest would be losing a job. Lower on the list would be for major expenses like car or home repair. After that, medical expenses are the other most likely unexpected expense. These things may run between $500 and $5,000 (a broken furnace can be pricey). So my question is if an emergency fund is needed? I think the easy answer is yes, particularly if the average income is somewhere between $30,000 to $100,000. Then an emergency fund becomes crucial because coming up with $500 or $1,000 is more difficult, especially if the net worth is close to $0. The other time the answer easily is yes is if there is job volatility. This can be either insecurity in the current position or being a small business owner. Both cases can lead to a loss of income and therefore three to six months of expenses become very important. Nobody wants to be kicked out of their homes, and in the case of a loss in income, this can be very important. In both of these cases, I think having an emergency fund is paramount! Continue reading ... Your patients are rating you online: How to respond. Manage your online reputation: A soci...
Source: Kevin, M.D. - Medical Weblog - Category: General Medicine Authors: Tags: Physician Practice Management Primary Care Source Type: blogs