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08-27-2008 at 9:20 AM
big_noise
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Minnesota
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big_noise is not online. Last active: 12-04-2008, 1:47 PMBronze

NDR: How much would you/do you keep in emergency funds?

I could ask this on MM but since I don't lurk there very often, I thought it would be better to ask here, since this is my "home". Smile

I plan on doing some re-budgeting soon, and I'm just curious what others do or think on the whole reserve funds thing?  What do you think is a good amount to keep in emergency/reserve funds should someone lose a job, have a medical emergency or should there be some other immediate monetary need.  I've heard 3 months, 6 months, etc.  What's your comfort level?


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08-27-2008 at 9:22 AM
jersangl
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YOu really should have at least 3 months worth of mortage/bills in a savings account. That is really hard to do though.

 
08-27-2008 at 9:23 AM
jersangl
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WE almost live paycheck to paycheck, so I dont have much saved right now. I just picked up another job though, so I am hoping to have an extra 1,000 each month to put into savings


 
08-27-2008 at 9:24 AM
AbbyTownsend
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Iowa
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AbbyTownsend is not online. Last active: 12-04-2008, 2:01 PMSilver
We keep 10K reserved for emergencies, or in case someone has major medical needs.
08-27-2008 at 9:25 AM
losocute
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Joined on 01-02-2007
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losocute is not online. Last active: 12-04-2008, 6:36 PMSilver
i think they say 3-6 months.  it's really hard to save that much, but well worth it incase you ever need it.
 
08-27-2008 at 9:25 AM
sugardumpling
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Upstate NY
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we are working on building ours up. i would say 6 months of expenses would be ideal.    i am happy to keep 1000 for emergency stuff, we keep a cc w zero balance should we have to fly to deal with sick family members that are oot.   once we get the cc debt cleared (hopefully this time next year) i will take the $$$ that goes towards debt and put in savings.


 
08-27-2008 at 9:27 AM
lauren&matt
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San Antonio
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Well, I have a totally new perspective on this. My H and I are huge savers and we always felt comfortable w/ what we had set aside in our e-fund. We have more money elsewhere, in stocks, mutual funds etc... but the e-fund (savings account) was money I could get to in 5 seconds if needed.  

We are looking at over $20K in foundation repair.... starting next Wednesday. Needless to say, we didn't have $20K sitting in our savings account. Sooo.... we're having to rearrange and use money that we weren't planning on touching. It sucks. Basically, I'm saying that a couple grand in an e-fund isn't enough... 

08-27-2008 at 9:29 AM
DG1
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St. Louis, MO
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A generous 3 months of mortgage, utilities, food, gas, plus a little extra.  And amazingly enough, we actually do have it. Woo hoo!

 
08-27-2008 at 9:34 AM
BigBearsGirl
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South Carolina
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We keep a minimum of 10K for emergencies, but try to have 15k just in case. That way we can be prepared for just about anything.

 
08-27-2008 at 9:35 AM
315bride
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NYC
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315bride is not online. Last active: 12-04-2008, 6:23 PMSilver
I think it depends on how secure your job is and what type of living situation you have.  For us, both DH and I have good job security, have virtually no debt, don't have kids, and don't own a house.  So we have about two or three months salary on hand (excluding our DP money for our apartment). 

Amy


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08-27-2008 at 9:36 AM
NDChristine
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Northern VA
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NDChristine is not online. Last active: 12-04-2008, 2:15 PMNewbie
We have 6 months of expenses saved up - we'll both be moving and having to find new jobs this winter, so we're trying to desperately save as much as we can to make the transition less nerve-wracking.

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08-27-2008 at 9:39 AM
FMR0617
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Virginia
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We have two months salary in savings, so that will cover about 4 months of mortgage and bills. 
 
08-27-2008 at 9:42 AM
HikerBride07
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DC
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We save 3-6 months of our salary.  It would last us 6-12 months on our expenses if we lost our jobs.  However, we budget strictly enough where we could live on one of our incomes.  We keep a separate account for house emergencies like a roof or hot water heater.


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08-27-2008 at 10:03 AM
annabella10
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MN
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Our goal is to always have at least 4 in liquid accounts - we have kids though, so it's more important for us. This is more for once in a lifetime emergencies though, as we are both in super secure careers.



 
08-27-2008 at 10:06 AM
Bride0603
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Boston Area, MA
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We finally got the 6mo of expenses mark and we're sticking with it.  We have a REALLY old house and things are always going wrong so we need to have a bunch in savings to cover the unexpected...especially since we found out our foundation is not in the greatest shape and we need to be prepared if we have a costly fix looming.
 
08-27-2008 at 10:06 AM
RhymesWithOrange
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Atlanta, GA
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10k or more depending on your personal situation (number of kids, job security, cost of living, etc)





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08-27-2008 at 10:28 AM
jjenkins
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PA
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I would say 6 months or more.  We used to have 3 or so but at the end of last year my DH lost his job without warning and his new job meant a sizable salary cut.  Now we're trying to get cc's paid off and build our savings again.
08-27-2008 at 11:30 AM
Charlene&Steven
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Pennsylvania
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Right now we have 4 months...working on getting it up to 6.  We don't touch this money unless all other resources have been tapped out.  DH's job is very secure and we pretty much only count on his salary when budgeting, planning etc.  My job is decent, but it comes w/ a lot of unpaid time off (which I love!) but no paycheck is ever the same - so we never "count on" my income.  We also have a smaller "e-fund" where we throw monetary gifts, bonuses, rebate checks from things we've purchased, and then any extra cash we can.  We use this for unexpected house repairs, replacing appliances or other big ticket items, and if we get it built up enough we may take some money and put it towards something fun (we're taking a mini-vacation to the beach soon).

I've come to realize that everyone's circumstances are different and what may work for one person may not work for another.  Some people aren't savers, while others are extreme penny pinchers.  At the end of the day you have to be comfortable with how you've prepared for the unexpected.    


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08-27-2008 at 11:36 AM
Marie11-26-06
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Saint Paul, MN
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IMHO you should have at least $10K in a liquid e-fund to cover a loss of job, medical expenses, or major unplanned home repairs. 


 
08-27-2008 at 1:08 PM
BellaKelsey
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Minneapolis, MN
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We had about 3 months in savings, but with a baby on the way I'd like to increase this to about 6 months.

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08-28-2008 at 12:02 PM
aireka218
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We have about 15k but I'm really the most comfortable with 20k...but we just put a down payment on a house so I guess that's why we have these things. We spoke with a friend who is a financial planner and he said it's a good idea to set an attainable goal of how much you'd like to have sitting in your savings act, even though you may have some cc debt, because you may still need some go-to money if your cc are close to maxed out. That being said, once you have that goal reached and have some liquid money, then concentrate on the ccs (or other debts). That seemed sensible to us and we saved to 20k and now are concentrating on eliminating our cc debt...now only if someone could make the school loans disappear I'd be so happy! :) Hope that helps and good luck!
 
08-28-2008 at 12:57 PM
stefjeff84
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Madison, AL
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I think that 3-6 months expenses is a great e-fund.  Right now we have a little over 10 months expenses saved up, but are planning to use a little for a down payment for a car and to pay a chunk on a SL.  :D







 

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