Re: Is $1000 enough for an emergency fund?
Someday, we will have to sit down and have a chat about the psychology of Dave Ramsey's Total Money Makeover. But the short, short version:
$1,000 is not what Dave suggests an emergency fund should be--that is, it's not what he calls a "fully stocked emergency fund." $1,000 is Step One of the TMM, the first goal you're to reach in the plan, and the first of many 'small victories" meant to keep you eager to save, not spend. It is a safety net for when the car needs repairs or the furnace breaks, because many people who find value in the TMM have a much smaller emergency fund: like "$5 in dimes and two credit cards with some money left on them."
Step three of the TMM is "fully stock the emergency fund." Which means--say it with me now--three to six months of expenses.
--W@L
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