I must admit that my emergency fund is rather small (1 month expenses) because I don’t see what could happen that would force me to sell my ETFs. I get why people in USA have 3-12 months of expenses as an emergency fund, but do we really need that in Switzerland? My situation:
- I don’t have kids.
- I don’t have real estate, I live in the apartment owned by my girlfriends father (very cheap).
- I have a very very stable job situation (my employer would never let me go freely, as I’m one of his most valuable employees).
- I’m using public transport and I’m not that dependent on a car. We do have a VW Polo, but replacing it with a similar car would cost us maybe 5k (she would pay it as she wants to be the sole owner).
- We have a good insurance that covers basically everything (even vet bills over 100 CHF are 100% covered, or driving a car from a friend 90% covered).
- My parents are from Bosnia/Serbia. We have a flat in Pale (close to Sarajevo), where I get free accommodations and very cheap dentists (like 10x less expensive than here, including flights).
- I have a very thoughtful budget and different savings accounts (tax, vacation, yearly expenses like clothes, insurances, car expenses) with appropriate standing orders.
I don’t really see what scenario could put me in a difficult situation? Everything what could break (like smartphones, PC etc.) I’m able to replace with part of my monthly savings rate.
I’m I naive?