Re: Building an emergency fund with little income
The standard amount you should have is 3 months of income set aside for 'emergency'. This money is not to be used unless you get laid of from work (it happens) or have a true emergency. You laid a good framework for your current situation but if you want a more detailed assesment, include your total income, bills, and interest rate on your loans.
If your phone/cable bill is something you can do without (or just lessen for a few months) you may want to consider doing that and applying that money towards your Emergency Fund.
If your student loan is about 3% or so, I would continue to make the minimum payments on it. The 3% wouldn't be worth making extra payments on when your priority is your emergency fund.
I would NOT recommend taking out another loan to have just in case. If it comes to a true emergency and you need money, try to borrow from friends or family. Usually, they are kind enough to not charge you interest. Going in debt is something you want to avoid at this stage in your life with limited income.
And if you are worried about your 'check engine' light. See if you can have a friend to look at it and pay them in beer for their services. It always worked for me!
Best of luck to you
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