I had always heard have 6 months of funds available for emergencies. Can be pure savings, CDs, accessible credit cards (but they have to be repaid consitently), etc. Could be total job loss, serious medical issue or accident, major unpredicatable expese, etc. We have never been in a situation of need but we always talked about the what if's.
This was not about your PERMANENT emergency fund, but a smaller one while paying down debt. BIG difference.Originally Posted by sweetana3
I know the thinking that he is using, but personally I would feel better, even with debt, with a larger temporary emergency fund, so that I wouldn't have to put as much on credit cards. Personally, I would try for an ef of $10,000 if I were you--I think when we were getting out of debt I worked on the ef like it was a debt until I had $5000 in there and then when out of debt keep it at $10,000, separate and apart from the six months thing.
Yeah, $5Kish is what I’m aiming for.
I also think the DR 1k is too little nowadays--I would consider the inflation-adjusted amount to be around $3k, but it's great if you can do 5k and feel comfortable about your debt-reduction.
"Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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Doc has cleared me to dive. Yay!
Yay!
"Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
www.silententry.wordpress.com
Great news, Tradd!
Great news, Tradd!
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Be nice whenever possible. It's always possible. HH Dalai Lama
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Savings at $5K now so I’ll be aggressive with debt repayment again.
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