What does DR consider a fully funded EF?

**frugal is fun** · 01-03-2011, 09:46 AM

I'm working towards this goal but what I don't have is an actual number.

I don't have any of the DR books so does anyone know what DR considers a fully funded EF?

I guess my question is, is it just minimum expenses like mortgage, electricity, food, etc or does it also include my monthly payments into my 401(k), Roth IRA, 529 etc?

**Mom2-3** · 01-03-2011, 10:37 AM

Actually, I'm not sure. I just took our monthly expenses X 3. That's the first step for us, is to have that number. After that we will re-evaluate.

**Greebo** · 01-03-2011, 10:52 AM

Originally Posted by frugal is fun

I'm working towards this goal but what I don't have is an actual number.

I don't have any of the DR books so does anyone know what DR considers a fully funded EF?

I guess my question is, is it just minimum expenses like mortgage, electricity, food, etc or does it also include my monthly payments into my 401(k), Roth IRA, 529 etc?

Investments are not an expense, so no.

It's bare minimum, balls to the wall emergency style expenses. No luxuries, no fun - just enough to keep the four walls stable while you weather the storm.

Which means when the storm hits, you STOP the unnecessary expenses AND you stop the investments.

**frugal is fun** · 01-03-2011, 11:50 AM

Thank you Greebo, thats what I thought but wasn't quite sure and those are two significantly different numbers.

Actually I think I'm there already, need to get end of year figures so maybe I'll shoot for somewhere in the middle.

O and one more question...does he recommend 3 months, 5 months, 8 months? I was shooting for 8 months of minimum living expenses.

**handerson2005** · 01-03-2011, 12:30 PM

DR recommends 3-6 months, but I think you should do whatever is best for you and your situation. We'll be doing 8-12 months when we get to BS3 because it is what makes us comfortable. Great job on being close to being finished!

**frugal is fun** · 01-07-2011, 01:17 PM

Originally Posted by frugal is fun

Thank you Greebo, thats what I thought but wasn't quite sure and those are two significantly different numbers.

Actually I think I'm there already, need to get end of year figures so maybe I'll shoot for somewhere in the middle.

O and one more question...does he recommend 3 months, 5 months, 8 months? I was shooting for 8 months of minimum living expenses.

Okay well I actually did the math and boy did I underestimate! I'man little more than half way. Which I'm still very happy with. My raise hits my check next week so once I see how much that comes to after taxes I'll be able to save more each week. Also I plan to put most of my tax return into savings too. I'm still on target for having a fully fund 8 mo EF by year end 2011.

I can definitely live with that!