emergency fund: $500 or $1000

**Lucas** · 10-14-2010, 01:51 PM

hey guys I have been following dave for a while but just recently got on board with the baby steps over the last couple months. I have $525 in savings right now wondering if I need to take it to $1000 or not. My only debts are my truck $7000 and hhgregg $600. I also have several sinking funds in place. I have a steady job 40 hours a week and have worked here for over 2 years. So $500 or $1000?

**Libby** · 10-14-2010, 01:55 PM

I'd say $1K b/c you never know when sudden disasters can strike from health care to home repairs as well.

**Lucas** · 10-14-2010, 01:57 PM

Originally Posted by Libby

I'd say $1K b/c you never know when sudden disasters can strike from health care to home repairs as well.

true but I guess I should have included that I rent and between me and my roommate I pay $202 a month. i would not have to pay for any home repairs

**StanleyJohnson** · 10-14-2010, 01:57 PM

I agree with Libby. I'd save $1000 for your EF

**Momto5RN** · 10-14-2010, 02:05 PM

stick with the plan and keep 1000$ in .
my oldest son 22 currently lives at home works FT has a paid for car and only really has to worry about car insurance and student loan no rent no car payment and he tries to keep 1000 put aside .

**Darlene** · 10-14-2010, 02:25 PM

Why not more? Car repairs can be costly and if you didn't save it what would you do with it? I suppose knocking off that truck loan wouldn't be a bad thing

**Lucas** · 10-14-2010, 02:40 PM

Originally Posted by Darlene

I suppose knocking off that truck loan wouldn't be a bad thing

Exactly

**frugal is fun** · 10-14-2010, 02:50 PM

more money is always better for unforeseen emergencies and peace of mind. Haven't we all learned from the past year or two and how quickly things can turn for the financial worse?

I personally am working towards $12,000 EF

**frugalwarrior2** · 10-14-2010, 03:00 PM

Dr divided it=If you make 50,000 or less $1000.
More than $50,000 above $1000. If you only make $20,000 try for $500.

I like to base it on variables. Like how many kids,pets,cars,medical,etc.

**Lucas** · 10-14-2010, 03:38 PM

Originally Posted by Darlene

Car repairs can be costly and if you didn't save it what would you do with it?

I can name a couple good things to buy and/or spend money on-
-food-a good stockpile of food is always a good thing
-bullets-a good stockpile of bullets is always a good thing
savings for other things aka sinking funds
-vehicle maintenance
-vehicle licensing
starting to pay off stuff
-hhgregg
-vehicle
other savings
-college fund
-firearm fund
-401k and retirement plans

**piney** · 10-14-2010, 05:24 PM

1000. want go very far now days especially if you have an emergency and seem like an emergency can happen here pretty often.But i guess each one have to decide for them self what they can and want to put away for ef.

**AnW819** · 10-14-2010, 07:17 PM

$1000...to be sure that you will not need $1000 is stupid, because you never know whats going to come up.

**kita** · 10-15-2010, 11:55 PM

I had just heard that DR suggests $500 if you make less than $20,000. This is where I am right now. But I want a larger EF. My expenses at the moment run too close to my income. Almost anything can derail me. Finally I decided that I needed about one months expenses for my EF. I think of it as my "Crawling Baby Emergency Fund". Look at your expenses. How much "give" do you have in a month. Is your debt snowball over $500? I think that is the only time I might be tempted to have a $500 EF. Because then if something happened you could have $500 in cash and fairly soon you would have $500 to add to it. STill would find it scarey.
How much money would you sink into bullets and firearms anyway? Food stockpile I understand. Stocking a pantry enough so that you can purchase mostly sales as they come around saves money all the time.
How old are you? Does your company match your 401K contribution? I find it amusing that you think that a complete meltdown of the economy is possible (why else would the guns and ammo be considered "stockpile" and "savings") but you are also willing to put money into a 401K fund.
If you are looking at ways to avert major disaster, I suggest the food stockpile and a working knowledge of gardening, a good bike and auto and house repair skills. And no more than one gun per person. It just leaves a gun available for the other guy.

**Dancing Lotus** · 10-16-2010, 12:01 PM

If you have the money , more is always better. I'd go for 1,000

**druthb00** · 10-16-2010, 01:02 PM

Originally Posted by frugal is fun

more money is always better for unforeseen emergencies and peace of mind. Haven't we all learned from the past year or two and how quickly things can turn for the financial worse?

I personally am working towards $12,000 EF

I'd be so nervous with only $1K in the bank in case of an emergency...and I have several credit cards in addition to our savings (that I never want to have to use for that purpose, but are there just in case.) We just had to have the top-end of our engine rebuilt on our car: $1,800. Before that, a fuel pump: $700. If you've got a steady job and are only paying a little over $200 in rent each month, I'd keep saving more even once you get to $1K. Worst case scenario by saving more; you pay cash for your next car/truck

I just realized I'm in the DR thread, though, so....I don't have a clue how or if this works with his plan. Whoopsies.