I know that it's recommended to have 3-6 months spending put away in an EF. We have about $1,000 in our EF, and that can fluctuate a bit each month.
I hope to have credit cards retired in May. And, I think we will. I'm thinking that after that phase of our financial life is over, our next conquest should be to beef up the EF.
I've had a figure of $10,000 bouncing around in my head for a while. I decided to take a more serious look at that number.
One month of spending in my family is about $4,680. So, a three month EF would be about $14,000. I was only off by 40%.
If I allocate the $750 that we've been sending toward credit cards lately, it will take about a year and a half to get it built up. OK, that assumes no withdrawals. Better make it two years.
So, here it is, a new goal! My goal is to have $14,000 saved up in an EF by June 2015.
EF
January 10th, 2013 at 06:55 pm
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Also, as we are paying off credit cards, there's not a lot of fat in the budget, anyway. But, yes, if we were facing job loss-true long-term emergency, hopefully that $14,000 could be spread beyond three months.
January 10th, 2013 at 10:24 pm 1357856665
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