How Much Cash Do You Keep in Reserve?

I was thinking about how much of a cash balance plan I need to think about when I am ready to buy my house. Of course the thing I am thinking is that you never really know what is going to happen. You want to think that you are ready, but you never quite know what might happen. For instance your car could break down and it could be something rather minor or it could be total failure. A small thing goes wrong with your car and it can run you a thousand dollars to get it made right. If it is something major you can be talking about twenty five hundred dollars for the repairs. Of course I can not really work on the car that I have, they made it so that you have to know exactly what you are doing and you have to have a lot of equipment.

The big issue would be some sort of medical problem. That would take away your ability to work and earn money perhaps, while it could also cost you a huge sum of money.It is going to be something that would cripple you. The problem is that you can get insurance, but there is no way that you can plan for that sort of thing. It is just out of the realm of the things that you can control and you may as well act as though it is not going to happen. At least I do not have the sort of resources to be ready for that sort of event. You can be ready for some thing which is close to that catastrophic, but that would need a lot of cash in hand too. You have to be ready for what you can be ready for, but that is hard.