They say you should have X months worth of income saved up for tougher times or emergencies. I have just started saving last year, and I have not contributed anything to retirement because all my savings have gone into an emergency fund first. My goal is to save up $12,000 and put it in a high-yield savings account. After that I hope to start saving for retirement. I still have to work a few more months at my job (been working there 2.5 years now) before my retirement benefits kick in anyway. Do you have an emergency fund? Is it fully funded?
Do you have an emergency fund?
December 21st, 2007 at 07:53 pm
December 21st, 2007 at 09:18 pm 1198271929
December 21st, 2007 at 09:25 pm 1198272359
When I first starting to build one, and I lived from paycheck to paycheck it was helpful to me to think in terms of paychecks, rather than months, so if you were paid 2X month, you would save 6-12 paychecks. It made the milestones come up a little quicker - kinda cool to think your fund is now between the 2nd and 3rd paycheck, and if you got a raise, it meant that when you got used to the higher amount (and that happens so quickly) you knew to increase your goals accordingly.
December 21st, 2007 at 09:31 pm 1198272672
However, we are starting a down payment fund this month so our savings are going to increase dramatically here very soon (we keep the emergency fund and the downpayment savings separate).
December 21st, 2007 at 09:43 pm 1198273412
Caoineag reminded me, when we were younger and I worked, we always tried to live on just my income w/bills and kept all of our payments down so that if ever we should have to one smaller income could cover us. We bought less house, and less expensive cars, etc., to keep w/i this guideline.
I wanted it so that if something should happen to him I would be able to meet the bills to keep OUR roof over our heads and a vehicle on the road.
Oochie room is nice.
December 21st, 2007 at 09:56 pm 1198274169
December 21st, 2007 at 10:12 pm 1198275165
The point of doing this is if I am saving for a house vs the EF I will save the money otherwards I will spend it
December 21st, 2007 at 10:20 pm 1198275626
These days we have $12k cash. We invest everything above and beyond that. (Though we do have a decent amount of cash savings for other things that we would divert to "emergency" if needed).
The number I feel we should have in cash has changed dramatically over the years. Of course I would love to have more cash (who wouldn't). But it doesn't seem as necessary these days with our own situation. We do talk about saving up dh's income - a whole year into cash - when/if he returns to work. BEfore we consider how to invest it. Cash brings some pretty significant peace of mind. & I hope when we are 40 & 50 that we have significantly more cash saved up, regardless if dh ever works again.
December 22nd, 2007 at 12:38 am 1198283886
This year has been a year of complete and utter headaches. Job loss, sickness, car problems - you name them, I've gone through them.
Did you hear that big sucking noise back in October, that was the last of my EF being sucked DRY. I am working on starting it over, but it's a slow go.
December 22nd, 2007 at 02:26 am 1198290393
December 22nd, 2007 at 02:26 am 1198290394
December 22nd, 2007 at 12:32 pm 1198326743
December 23rd, 2007 at 10:07 pm 1198447649
Even if you save only $20.00 per pay check, it'll add up.
Like Aleta said, you can't get the years back.
December 24th, 2007 at 04:35 am 1198470946