Reading the Suze Orman book, I see that she is recommending an 8-month EF. DH's job is pretty secure, but it seems foolish to count on anything these days, so I am looking towards building the EF.
I guess that I've technically never had a real EF. We have $20k in CDs that were earmarked towards a house downpayment, and another $10k that I like to just keep as security. I guess the $10k would count as an EF, though I've not really considered it as such. But if we are to have an 8-month EF, that would be over the 10k (more like 12-15k). Do I build up the EF more, or just figure that if things get that bad, we won't be buying a house anyway, so we can just use the $20k house-fund to cover living expenses?
More info:
No cc debt
Car loan due to paid-off in 4 months (1%interest)
We already put 10% pre-tax into DH's TSP, and $4400/yr into my Roth/trad. IRAs
We have a college fund for kids
We have a "Freedom Account" where I stash $ for everything from car repairs/insurance to vacations & Christmas
I guess that I've technically never had a real EF. We have $20k in CDs that were earmarked towards a house downpayment, and another $10k that I like to just keep as security. I guess the $10k would count as an EF, though I've not really considered it as such. But if we are to have an 8-month EF, that would be over the 10k (more like 12-15k). Do I build up the EF more, or just figure that if things get that bad, we won't be buying a house anyway, so we can just use the $20k house-fund to cover living expenses?
More info:
No cc debt
Car loan due to paid-off in 4 months (1%interest)
We already put 10% pre-tax into DH's TSP, and $4400/yr into my Roth/trad. IRAs
We have a college fund for kids
We have a "Freedom Account" where I stash $ for everything from car repairs/insurance to vacations & Christmas
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