How much towards EF

[stoney508]

I know that my EF is supposed to be about 6 months expenses and all my expenses are going to be around 1200 a month (estimate until I can put more accurate budget together) would this mean 8k should be enough or should I just try to save up until I get 10k? This is just to get an idea of what you guys think. This EF will not be funded for quite a while but I will have a goal in mind when I set out to fund this. What do you think should be my starter goal?

[disneysteve]

6 months would be $7,200 so I'd go with that.

[kork13]

You can probably just aim for $8k. I prefer nice round numbers, and since you're not 100% on exactly what your expenses are, it's better to overestimate.

On that note as well, a very good way to figure out your actual expenses then develop your budget is by simply tracking every cent you spend for the next couple months. Whether you do it on paper or in a spreadsheet like Excel, it can be a very instructive exercise & really shows you where your money is going. That enables you to take total control and be well aware of your present situation. I've done it for a couple years now, and it's a very useful practice.

[stoney508]

I have am excel spreadsheet of my expenses but my expenses will be changing shortly since I will be moving to an apartment with my finace and some of my student loans are going to be paid off. So I will not be able to put one together until early next year with all my expenses plus an idea of what my budget will truely be like. I like round numbers and I figured that more would be better off in the long run. I know my finace and I will need to go through everything when we get things settled down but I know we are going to also need to look at bank accounts and see which accounts we will end up keeping and what we will be opening up so its going to be confusing for a while.

[disneysteve]

I have am excel spreadsheet of my expenses but my expenses will be changing shortly since I will be moving to an apartment with my finace and some of my student loans are going to be paid off. So I will not be able to put one together until early next year with all my expenses plus an idea of what my budget will truely be like. I like round numbers and I figured that more would be better off in the long run. I know my finace and I will need to go through everything when we get things settled down but I know we are going to also need to look at bank accounts and see which accounts we will end up keeping and what we will be opening up so its going to be confusing for a while.

Too much is certainly better than two little. Plus you have a lot of upcoming changes. As you said, when you move, your expenses will change, when you pay off your loans, your expenses will change. And then when you get married and merge your finances, things change again.

For right now, your EF should reflect your current expenses. As expenses change, you can adjust your EF accordingly.

[stoney508]

I have to actually build my EF back up since I have been aggressive with paying some SL down I want a goal to reach for and I know its going to be tough to get to this 8k. I am saving towards a wedding within a year and only hope I can get my EF between 1-3k by then. Its been a rough last couple months and my EF is around 800 by the end of the week si I should say my goal is between 2-4k by the wedding.