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EF

January 10th, 2013 at 06:55 pm

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.

5 Responses to “EF”

  1. ceejay74 Says:
    1357844297

    Hi Bob, when you say "one month of spending" are you talking about your full, regular budget? When I was figuring out how much I needed for 3-6 months, I came up with an "emergency" bare-bones budget. Maybe your budget is already bare-bones; mine has a lot of discretionary stuff that I would cut if we lost our income.

  2. Bob B. Says:
    1357845266

    @ceejay - it's kind of a hybrid between "full regular" and "bare bones". I cut some fat to come up with that number, but not all of it.

    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.

  3. Amber Says:
    1357856665

    I'm cheering for you Bob, I've paid off three CCs this month saving me about $100 a month in CC payments. So I understand, I too will be beefing up my EF to about $10,000 so we're in it together Wink

  4. LuckyRobin Says:
    1357859749

    I'm aiming for $18,300 by the end of the year and $30,000 by the end of 2014, and then probably make a new goal for 2015, so I'm right there with you.

  5. wowitsawonderfullife Says:
    1357861338

    Bob, it's been great watching you successfully retire those credit cards. Can't wait to hear about their retirement in May. Party time!

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