# what's a good target for equivalent salary put away for a rainy day? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [April 29, 2009, 8:33pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766 "2009-04-29T20:33:28Z")\ **Posts on this page:** 6\ **Page:** 3
**Author:** ![SandyHook](https://avatars.discourse-cdn.com/v4/letter/s/dec6dc/32.png) [@SandyHook](https://boards.straightdope.com/u/SandyHook)\ **Post date:** [May 1, 2009, 3:13am UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/41 "2009-05-01T03:13:35Z")
Ms Hook and myself are both retired and living off Uncle Sugar. So, unless things go completely to hell we don’t have a lot of financial worries. Like **Broomstick** we are also debt free. In December we paid off the house. For the 12 years before that we had no payments other than the house payment. About 6-7 years ago I said, “Fuck saving any more money.” At the time we had about a year’s worth in savings (not counting IRAs etc). I was starting to feel the pinch of time. There was a whole lot more behind me than there could be in front of me and there were a world of things I wanted to do while I still could. And I don’t regret my decision one bit. Life’s short children, it’s only money and you better get to enjoying while you can. Never mind. ---
**Author:** ![Malthus](https://avatars.discourse-cdn.com/v4/letter/m/85f322/32.png) [@Malthus](https://boards.straightdope.com/u/Malthus)\ **Post date:** [May 1, 2009, 2:16pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/42 "2009-05-01T14:16:28Z")
> [@ParentalAdvisory](#): > > We get to deduct above the standard deduction limit. For a lot of property owners, it will be barely anything at all to deduct, if anything at all. For those that pay a lot in property taxes and can deduct a huge amount, they’re paying a dollar to save a quarter. It’s something, but they’re still paying somebody, and it’s not themselves. True enough, but it’s more than we get. It’s a factor in the decision as to whether or not to prioritize paying off the mortgage - in Canada, it makes it if you like one notch more urgent to get rid of that damn debt. ---
**Author:** ![PunditLisa](https://avatars.discourse-cdn.com/v4/letter/p/4af34b/32.png) [@PunditLisa](https://boards.straightdope.com/u/PunditLisa)\ **Post date:** [May 1, 2009, 3:02pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/43 "2009-05-01T15:02:47Z")
In addition to retirement accounts, 529 accounts, and short term and long term savings accounts that could conceivably be tapped in an emergency, we also opened up a decent sized HELOC. If you do have equity in your home now, it might be worthwhile to open up a HELOC while you have the income and emloyment history, and pay modest annual fees even if you never tap into the funds…than to try and scramble for credit AFTER an emergency arises. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [May 1, 2009, 3:07pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/44 "2009-05-01T15:07:12Z")
> [@PunditLisa](#): > > In addition to retirement accounts, 529 accounts, and short term and long term savings accounts that could conceivably be tapped in an emergency, we also opened up a decent sized HELOC. > > If you do have equity in your home now, it might be worthwhile to open up a HELOC while you have the income and emloyment history, and pay modest annual fees even if you never tap into the funds…than to try and scramble for credit AFTER an emergency arises. VERY true! Annual fees may not be an issue depending on the bank (we have ours through a credit union which has no such fees). Read the fine print though - Some HELOCs include language saying that if your circumstances change (drop in your credit score or whatever) they can restrict future disbursements. I believe ours has such language. ---
**Author:** ![PunditLisa](https://avatars.discourse-cdn.com/v4/letter/p/4af34b/32.png) [@PunditLisa](https://boards.straightdope.com/u/PunditLisa)\ **Post date:** [May 1, 2009, 5:14pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/45 "2009-05-01T17:14:42Z")
> [@Mama\_Zappa](#): > > Read the fine print though - Some HELOCs include language saying that if your circumstances change (drop in your credit score or whatever) they can restrict future disbursements. I believe ours has such language. I’m sure that’s true, but our intent would be to use our HELOC to pay off bills, which would in turn protect our credit score in a fiscal emergency. Unless the bank asks for another round of tax forms and paystubs, how would they ever know you were out of a job? ---
**Author:** ![Gaudere](https://avatars.discourse-cdn.com/v4/letter/g/e495f1/32.png) [@Gaudere](https://boards.straightdope.com/u/Gaudere)\ **Post date:** [May 1, 2009, 6:55pm UTC](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766/46 "2009-05-01T18:55:54Z")
If your house’s value dropped, they might cancel the HELOC, since you might owe nearly or more what your house is worth. That’s an instance that may arise nowadays. [Previous page](https://boards.straightdope.com/t/whats-a-good-target-for-equivalent-salary-put-away-for-a-rainy-day/494766.md?page=2)