Question about emergency fund...

**rachelMcK** · 07-17-2008, 12:11 PM

Okay, so many of you know about the financial situation between DH and I. We agreed upon both of us having seperate savings accounts. Now that I have one, how much should I put into it. I want to start to pay off my debt as soon as possible. I know Dave Ramsey says $1000, but would $500 be alright for now? I have a paycheck coming in about 2 or 3 weeks from some respite work I did for a family friend. Its about $350 which would really jumpstart the savings?

What would you do? $500 or $1000?

Thanks!

**Momof4cats** · 07-17-2008, 12:21 PM

Dave says if your income is under $20,000 a year, $500 is ok. I have a big security gland, so I would opt for the $1000.

**Denvergirlie** · 07-17-2008, 12:21 PM

A baby EF is to brek you of the habit of reaching for a credit card in a time of emergency. $500 BEF is recommended for those that make a low income, $1,000 BEF is you make under $70K a year and $1K+ of you are over $70K a year.

BEF is their to create a small cushion, you should not feel comfortable as you should still be scared about your debts and that in turn will push you to be that more aggreessive in getting rid of the debt.

With your recent marital issues, $500 might not be enought, if storm clouds are on the horizon, Dave recommends beffing up the BEF.

It's all very relative, will you feel somewhat comfortable that $500 would be able to solve most small emergencies you might face? (Blowing out a tire, dental expense, etc, etc)

I started with a $2K BEF only because that would cover over a month of expenses should I lose my job which is something that I was scared of at the time. Since then, I've funnelled another $1K, for a total of $3K in my BEF just because of the scarry job situtation I am in.

Do I have total peace that if I lose my job I will be okay finaicailly, of course not, but I had possible storm clounds so beefed it up a bit to a level I feel better with.

Good luck

**Kitten20** · 07-17-2008, 12:24 PM

I would think $500 would be fine for you, as long as you've made a promise to yourself -- no more borrowing (aka using credit)!

**FrugalMomof3** · 07-17-2008, 12:32 PM

According to Dave Ramsey, with your income $500 would be the right amount, just have to not touch it.... only for emergencies.

On that note, since you and your DH will have separate accounts, this is YOUR EF fund, not his.... you need to make sure it is YOUR emergency your paying for and not his, if you ever have to dip into it.

**suzysaver** · 07-17-2008, 01:02 PM

I feel much more comfortable with 1,000 in mine, too many times that something has come up that really took a bite out of that 500 and then I would feel uneasy. This allows me a bit more breathing room.

**MomToTwoBoys** · 07-17-2008, 01:58 PM

If you two have separate savings accounts, I'd do $1000 in both. If you want to do $500 for now then that's perfectly fine. Later on if you're able to, up both accounts to $1000. That's what DH and I are doing.

**Moonblossom** · 07-17-2008, 11:35 PM

My security gland is large so I have 2k sometimes more in mine we rent so I want to make sure if the property manager ever becomes more of a turd then he is we can move if we have to. I agree though 500 should be good as DR says if you make under 20k to do 500 and 1k if over 20k but on that note IF you and your DH are doing separate accounts I would do 1k just to be safe, and yes it is your BEF not his to use if he has an emergency.

**Wendy99** · 07-18-2008, 09:48 AM

Originally Posted by FrugalMomof3

According to Dave Ramsey, with your income $500 would be the right amount, just have to not touch it.... only for emergencies.

On that note, since you and your DH will have separate accounts, this is YOUR EF fund, not his.... you need to make sure it is YOUR emergency your paying for and not his, if you ever have to dip into it.

I have to say I totally agree with this post. I think once you hit the $500.00, then as you can keep adding to it. Or if your unsure between $500 and $1000 maybe go in the middle and save $750 - maybe that little extra will give you peace of mind.

**Ceashels** · 07-18-2008, 09:57 AM

If things continue to be a little rocky in your relationship I would go for a bit larger BEF. Starting with a goal of $500 is a good start as that can cover most things and then boosting it up to a comfortable level as you continue to earn money. I strongly believe you need to have a financial safety net in place if for some reason you need or find yourself with less support from your spouse.

**Greebo** · 07-18-2008, 10:14 AM

On ceashels theme - If they get REALLY rocky - then you may need enough money for a security deposit and first months rent.

So yeah, bigger EF for yourself - aim for maybe $2,000 or so, so you can rent something if you need to and buy the basics w/o going into debt.

I'm not hoping this marriage ends - I'm just saying, be prepared.

But - he does sound like he might have half a brain after all, so hope is not lost.

**Michelle** · 07-18-2008, 10:20 AM

Originally Posted by FrugalMomof3

According to Dave Ramsey, with your income $500 would be the right amount, just have to not touch it.... only for emergencies.

On that note, since you and your DH will have separate accounts, this is YOUR EF fund, not his.... you need to make sure it is YOUR emergency your paying for and not his, if you ever have to dip into it.

Originally Posted by Ceashels

If things continue to be a little rocky in your relationship I would go for a bit larger BEF. Starting with a goal of $500 is a good start as that can cover most things and then boosting it up to a comfortable level as you continue to earn money. I strongly believe you need to have a financial safety net in place if for some reason you need or find yourself with less support from your spouse.

:agree:

If you're still keeping your money separate, I would make sure that your EF is YOURS and yours alone.

**cmdarlin** · 07-18-2008, 10:33 AM

I would think $500 would be good and besides, just because you reach that goal doesn't mean you have to stop adding to it.

Good Luck,
Debbie in Missouri

**hugxlaughxsmilexlove** · 07-18-2008, 11:23 AM

If you start with $500 - you're pressuring yourself to reach that $500. Once you reach $500 you're finally at a peace of mind ("I've got $500 in my EF, phew!"). Then you can change your mind to "Ok, let's make this $1,000 now!!"

I am a huge stresser.. if I don't have what I want, when I want it - I freak out. Right now I have $0 in my EF, I haven't even OPENED a savings account yet (this is bad and it annoys me everyday). My first goal is $500, then $1000 and then $2500.

Start with small goals and continue to work yourself up for the next big one. To me it's like losing weight - if you want to lose 20 lbs, you start with 5 lbs so you're not disappointed right away, right? Same with money, in a weird sense (for ME)..

**hugxlaughxsmilexlove** · 07-18-2008, 11:28 AM

Originally Posted by Michelle

:agree:

If you're still keeping your money separate, I would make sure that your EF is YOURS and yours alone.

I agree with all of those too.. when I open my account, it's a secret and I'm actually putting my mom on my account with me (I feel better this way and I trust her not to touch my money). I will more than likely open two accounts but definitely one is mine and mine alone - you never know when YOU will need it.. but I do have small children so I need one that is open for my DH to put money into (or, him give me money to put into it (he doesn't like going to the bank))..