How much for a rainy day fund?

**robex** · 08-14-2005, 06:53 PM

Re: How much for a rainy day fund?

I think $1000 in liquid assets is great. We have never had an emergency that cost more than that --the worst was probably a $500 car repair that was unexpected.

**baselle** · 08-14-2005, 08:48 PM

Re: How much for a rainy day fund?

Robex - you are a lucky dog. Never been fired?

The minimum, in my opinion, for easy sleep is 3 months living expenses. That's if you're single and no dependents. If you have an idea of a monthly bare bones budget total, then multiply it by three - otherwise the easy way to figure it out is six paychecks.

**BCompDude** · 08-14-2005, 09:16 PM

Re: How much for a rainy day fund?

The very minimum? For me, its a thousand dollars. Thats a *minumum*. I would really aim for 6 months of living expenses--that will assure that if you can't work for a period of months you won't have to worry, and it'll handle any emergency that I can think of (provided you have decent insurance policies for health/car etc.).

Its all personal opinon of course; however, I've never heard ANYONE say that they had too much money saved up. Take steps, 6 months of expenses seems (and in reality *is*) a daunting task to accumulate in a short time--so take it nice and slow. Set goals. A few that I used when I had ZERO in my account balance (that was a horrible feeling, thankfully long ago):
Save $1,000 Hint: Setup an account at a banking institution (ING is great) that debits a certain amount on a weekly, bi-weekly, monthly etc. basis. You'll be amazed at how easy. . .and fast this first step is.

Save one months living expenses--if your expenses are under a thousand, well count your blessings and move onto the next.

Save three months living expenses

Save six months living expenses

All of this assumes that you don't have any credit card or other expensive consumer debt. If this is not correct, you should put as much money as you can towards that and only AFTER that is gone start to save for emergencies. It makes no sense to "save" 100 dollars a month (or any amount) and earn 3.15% when you are paying mega interest on a CC or other consumer loan. And if you happen to have an emergency during this transitional period, you can always use your credit cards. Its still a better plan than saving money and concurrently paying interest on cc or other expensive debt.

God Bless

**Bluezy** · 08-14-2005, 09:48 PM

Re: How much for a rainy day fund?

Considering the cost of living, I would save more that $1000 when possible. $1000 is not much anymore...just one transmission repair on a vehicle will take that.

**Tree0164** · 08-15-2005, 02:44 AM

Re: How much for a rainy day fund?

We are currently building our emergency fund to 6 months of living expenses. If DH looses his job, I am pretty sure that it wouldn't take 6 months to find something else.

**meaghanchan** · 08-15-2005, 03:03 AM

Re: How much for a rainy day fund?

I started out with $1000 that I'm trying to build up to 6 months living expenses. I'm just kind of stuck between having a larger emergency fund and starting to save for retirement... On the one hand, it seems so beneficial to start saving for retirement early. On the other... that retirement account's not going to help me if I get fired.

**jmjj215** · 08-15-2005, 07:06 AM

Re: How much for a rainy day fund?

I feel comfortable with four months of generous living expenses.

**BAGAGT1** · 08-15-2005, 01:17 PM

Re: How much for a rainy day fund?

One of the reasons why I'm a big fan of the Roth IRA, is that it is first a retirment account but it can act as a "secondary" emergency fund should the primary e-fund be depleted in a worse case scenario. I personally like at least six months of expenses should a bad economy force you into a long unpaid vacation.

**PrincessPerky** · 08-16-2005, 03:20 AM

Re: How much for a rainy day fund?

Dunno if anyone wants back to the origional question, but I like 1000, cause it is a nice even number and easy to 'hide' in my checkbook. Making it totally acccessable, but generaly forgotten (I just drop the 1 in my register). Once I had that I send the rest to the credit card. (oh and as a person who constanty was overdrawing the checking account due to bad timeing, it is a perfect amount to prevent that, no bill 'cept medical has been more than 1000)

Oh but I would like more eventually, just think it is a nice round starting point. After that I would prolly just go to 2000 (and so on - up to 3 months pay), so I can 'drop' the 2 and still forget it, but have it.

**ecarsonjr** · 08-16-2005, 07:41 AM

Re: How much for a rainy day fund?

I am aiming to have at least 3 months of expenses saved up to feel comfortable.

**TBH** · 08-18-2005, 08:44 AM

Re: How much for a rainy day fund?

I second BCompDude's advice about setting small goals.

I am still trying to get up to six months' living expenses and stay there. Just when I get up to six months, something happens (usually a vacation I can't resist taking) and I'm back down to five months. Then I slooooowly work my way back up again.

I agree that you can get away with less if you're single and have no dependents. We have one dependent, a mortgage, an old car, etc. Luckily between the two adults in the household we have 3 part time jobs, and no full time. So we're unlikely to lose all three jobs at once. So I hope I never have to live on my emergency fun, just keep using it for appliance repairs and so on.

**kzz** · 08-18-2005, 10:34 AM

Re: How much for a rainy day fund?

I aim for $5000. If I'm lucky enough to have the account accumulate to $10,000 then I put half in a 3-12 month CD.

And then I start all over again.

**akaivyleaf** · 08-18-2005, 11:18 AM

Re: How much for a rainy day fund?

I agree with the ROTH serving both purposes in theory, but I wouldn't necessarily practice it. If you are kinda invensible, and haven't had an emergency come up, investing into retirement is good. The beauty of a ROTH is that you can get the money you contribute back (don't really know how long this process takes), but you can't get your earnings.

Would I do this? Nope... I would have two separate accounts, actually I have 3 accounts. I have a local savings in a money market account, I have an Emigrantdirect account, and I have a Roth... I can put my hands on money instantly should I need to.

**DivaJen** · 08-18-2005, 11:24 AM

Re: How much for a rainy day fund?

To feel comfortable, I need at least three month's living expenses covered. I want to know that if something should happen we're going to easily cover our mortgage and such for at least a few months.

How much for a rainy day fund?