My Emergency Fund

I did some rearranging of my emergency fund. It had been in savings, checking, and a money market fund with the exception of 2% which was in an index fund. For the past few weeks I've been thinking it would be really unfortunate to miss the opportunities we have in these times. I mean, I have been continuing to contribute to my 401k but that's it.

So I decided to put another 10% of my e-fund into the index fund. Then I caught my father's excitement and put in an order for AIG. The 10% promptly fell to 9% and the AIG would only be around 2% of my e-fund so totaled up, I have 12.5-13% of my e-fund in pretty unstable places. This doesn't really bother me, though. I figured eventually I would move in that direction anyway. I mean, if I amass 25k or 50k in stocks and mutual funds, who needs a whole pile sitting in stable funds? I would still want a few months worth of expenses in "cash" but 6 might be overkill.

Besides, I currently have what would be an additional 10% of my emergency fund in a stock and a mutual fund but I'm not counting that as e-fund. I dunno, I can see myself having trouble drawing the line.. 'cause at the end of the day, if I had a true emergency, I wouldn't stop at my cash funds, you know?

In any event, now is a good time to make this move. If what amounts to 20% of my emergency fund suddenly drops like a rock and turns into 5% of my emergency fund, I can easily steal from my house down payment fund in an emergency. I think I will re-evaluate things at the point when I want to empty my house DP fund, but I don't think I will change my mind. Also, I added a bit more "cash" to the e-fund to make up for a bit of the drop that already happened. It'll be interesting to see where things sit at the end of the month.

Overall my net worth dropped so far this month despite me spending less than what I bring home, therefore saving money and paying off little bits of my debts. Don't you hate it when that happens? So yeah, I'm one of those obsessive money watchers. I don't think it's a problem, though. I have no desire to pull my money out of the stock market or the bank and put it under the mattress. Especially where I currently live :)