What = 3 - 6 months' living expenses?

[PrincessPerky]

Re: What = 3 - 6 months' living expenses?

I go with #2..it happens to be a nice round number (was anyway) and it is low, making it a managable goal....
though right now we are aiming for 3 months, I think eventually 6 or 12 would be nice, but mini goals are more manageable.

[aurielle]

Re: What = 3 - 6 months' living expenses?

I go with #2..it happens to be a nice round number (was anyway) and it is low, making it a managable goal....
though right now we are aiming for 3 months, I think eventually 6 or 12 would be nice, but mini goals are more manageable.

I second that. I've been through some very dire straits and survived on much less than 3 month's EF at the #2 option. I also need to save for other things, like a replacement car, a new bed, etc. I'll need to replace those within the next few years and I don't make THAT much money so I can't be saving up an EF forever.

[laceshawl]

Re: What = 3 - 6 months' living expenses?

My budget is pretty tight. I would opt for #2 and if I had to use the EF, stick to the current budget and keep putting money aside for things like appliance repairs. There would also be a little money there for things like the occassional meal out or trip or a little splurge. I think it is important to allow yourself some little treats even when you need to be very careful with money, or you get too discouraged.

[rduell]

Re: What = 3 - 6 months' living expenses?

Rduell, we've managed to alleviate this risk by buying the majority of our gas at the local station a few blocks from the house. They consistently have low prices and the clerks there know we are good for the money because of our repeat status w/checks that always cleared. They never put a hold on our account when we use our debit card. We also gas up four vehicles there every week so we're good customers as well.

We do the same. The gas station we use is on the very next block and our daughter that's in college now worked in their sub shop her junior and senior year of high school. So we are very familiar faces in there.

I just had no idea that other places did it. It's a good thing to know for when I'm traveling.