EF Question

**Bournecrazy** · 05-17-2008, 11:44 AM

How much is the average EF? in terms of months worth of pay, and wha is the minimum you would say is best to have im gonna start one up soon but dont know how much to save. thanks in advance for any replys

**frugalfriend** · 05-17-2008, 11:50 AM

Start with saving up to $1,000. in your EF. Then if all debt is paid off, put away 3-6 months of living expenses.

**C@rol** · 05-17-2008, 11:50 AM

You should at the very least have 3 months of income in an liquid account such as a Money Market Account.

Realistically it should be about 6 months to 1 year with the recent economy. Sit down and total all of your expenses for the month and don't forget the extras and multiply that by three and you should come up with your Emergency Fund amount you need to save.

**Bournecrazy** · 05-17-2008, 11:54 AM

okay, $1000 converts roughly to £500, and its living expencies, which is good as i thourght it was 3 months of actually full pay which would be £2100 haha, im silly. i will have to add up expencies - mainly just petrol and food at mo. thanks anywhoo's

**Bournecrazy** · 05-17-2008, 12:01 PM

just added up basic expencies, food, petrol and a few other things, comes up to about £600 ($1200 approx) which is not too bad, will have to find a good savings account for it

**Michelle68** · 05-19-2008, 05:50 PM

Sounds like you're on the right track.

--Michelle

**Karla** · 05-21-2008, 03:43 AM

Good luck...It sounds like you are ready to make a good move.

**Dancing Lotus** · 05-21-2008, 07:21 AM

Originally Posted by C@rol

You should at the very least have 3 months of income in an liquid account such as a Money Market Account.

Realistically it should be about 6 months to 1 year with the recent economy. Sit down and total all of your expenses for the month and don't forget the extras and multiply that by three and you should come up with your Emergency Fund amount you need to save.

I just can't see havening a yrs worth of living expenses.Thats not an EF thats a savings account. Three to six months sounds about right.

**Bournecrazy** · 05-21-2008, 11:22 AM

i agree thats too much for me to save on what i get paid, and so far im doing well saving, as all money made from ebay is being saved to the side for now, which i will use for my first deposit. i just need to get the account fully opened first. i think i am going to aim for £500-600 if it reaches it quickly i will keep going, it would be nice to see the balance really high, then i will deffo not spend it, just admire it

**LexTysMommy** · 05-21-2008, 12:10 PM

I think start with one month as goal, then work up from there as long as you can.

I was unable to get jumpstarted on my EF until I got my taxes back. Good luck!

**Frugal Nurse** · 05-21-2008, 12:22 PM

Work small and build from there.

I am working on saving 25 years of income. LOL!! I want to retired very soon.

The recommended liquid money should be 3 months worth of expenses.

But I think what C@rol was saying is that... if economy is so bad, costs are skyrocketing and if your job is constantly or potentially on the chopping block... a year's worth of income would be better.
It's hard to get there... but try at least.

As already explained~ figure out what your expenses are for a three month period. Add a little buffer and that's what you should be setting aside in an account that is not easily accessible, yet you can get it within a few days and without penalty.