Thursday, December 15, 2011

Geldzin2: Emergency Fund

In version 1.9 (build#77), I implement the concept of an emergency fund. The emergency fund is money that has been saved specifically for emergencies. An emergency is "something unexpected that has major impact on your family". Things that can be saved for or that can wait are not emergencies. The emergency fund "turns crises into inconveniences" (quoting Dave Ramsey both times).

Geldzin2 allows users to specify what their emergencies are. Anything you can think of that you want to have money available for when it suddenly happens should be considered an emergency. The sum estimate is the emergency fund goal. The minimum amount should be held in cash (ready to spend on a moment's notice), and the rest held in a bank account that you do not use for everyday expenses (separate from your main checking account).

During distribution, emergencies are prioritized higher if the minimum amount has not been achieved. Otherwise, they are considered after debts are taken care of. (See image below).

The app considers various factors to determine whether current income should be distributed towards emergencies, including the fund goal, minimum, available cash and emergency account balance, and anything that might have been distributed before but not yet transferred to the account.

To access the emergency fund feature, log into the app and navigate to {Emergency Fund}.

1 comment:

2gig control panel said...

Quite revealing for me though. I like the program.