New used car question

[skives]

So my wife and I are saving for her new used car. Currently we have $7,200 saved and that should increase to $8,900 next month. My question is would it be ok for us to take $5,000 out of our savings to buy the car by next month sometime? Below is a break down of our finances.

Savings - $20,000 (this is our emergency fund) This probably 12 months worth of expenses if we both lost our job.

Salaries - We are on pace to bring home $48,000 between the both of us this year so about $75,000 gross income

Debt - no debt besides our mortgage payment which is $557.84 but we pay $900 right now to get it paid off faster.

I think that is everything you need to help me out. If I missed something let me know. Thanks in advance for your input.

[disneysteve]

Certainly, a 12-month EF is very generous. You wouldn't be taking any big risk by taking your EF down to 15K temporarily. You mentioned that you're going to add $1,700 to the car fund next month so once the car is bought, you can direct that money to get the EF back up to 20K if that's where you like to keep it.

All of this assumes that you are adequately funding retirement savings too.

[skives]

Certainly, a 12-month EF is very generous. You wouldn't be taking any big risk by taking your EF down to 15K temporarily. You mentioned that you're going to add $1,700 to the car fund next month so once the car is bought, you can direct that money to get the EF back up to 20K if that's where you like to keep it.

All of this assumes that you are adequately funding retirement savings too.

Yes we both contribute 15% to a roth 401k. Also we would need to the $1,700 from next month for the car. We are looking at a car between $13,000 and $14,000.

[disneysteve]

Yes we both contribute 15% to a roth 401k. Also we would need to the $1,700 from next month for the car. We are looking at a car between $13,000 and $14,000.

Sounds fine to me.

[LivingAlmostLarge]

yes! What sort of car are you looking at?