? on EF

[nodmicks]

I asked this in another thread but will ask here too

When I figure EF I figure actual expenses not income. Do you?

Does everyone else include every expense category? I mean things you would cut in a layoff situation like clothing, school lunches, hunting, car repairs, home furnishing, fun $, pets, vacation etc? Or do you count just the basics?

If I look at just basic expenses without categories like the above I drops what we need monthly quite a chunk.

I currently have counted it all to get a monthly EF amount. How do you figure it?

[nuisance26]

~I figured just the basic, necessary expenses for our EF: mortgage, taxes, insurance, food, utilities, gas for the car, water/sewer and medical expenses.
In an income replacement situation, we'd be unlikely to spend money on entertainment, vacation, gifts, a second car or more clothes. So our EF is 25% less per month than what we currently spend to reflect a 'hard times' budget.~

[nodmicks]

Thanks for explaining how you do yours. Ours would go further if I figure bare bones and don't figure in those categories or sinking funds.. Ok off to do more math!

[Thevail]

I figure ours with all the normal monthly bills:
Natural Gas
Electric (+10% since we're likely to be up later or have people in multiple rooms if DH is off work)
Internet (DD has to have it for uploading college work anyway)
Phones
House Payment
Car Payment
Insurance
Food
Gas for the car (although I only figure 1/2 as much since no commute)
Water/Sewer
Garbage

Then I add $500 for any unexpected repair cost like flat tire, busted gutter,replacing a hot water heater etc.

This time I didn't add in fun money or gifts to the total. But boy do I wish I had! Kids still have birthdays, christmas still comes, your friends and relatives still get married or engaged even while you're out of work!

So next time there will be an additional $500 allotted for that too.

[dcompton]

I base it on expenses, not income, and use my average expenses now. I would cut out some things for sure, but if it were a job loss situation, I would also lose medical insurance which would seriously increase my cost for meds.

I figure if it does come out to less, I'm ahead of the game and the EF will last longer.

[Michelle68]

I just figure the basic expenses, also.

[nodmicks]

Thanks everyone. In all honestly I figure too much into it then as I have figured it right as things stand right now.

[Siebrie]

We're now working on getting 3 months rent in our EF (that includes water, heat and natural gas). Afther that, we'll add 3 months' worth of electricity, after that 3 months' worth of food.

We're layering it according to 'urgency'. We need the house and food, but not the car or new clothes/toys/cable/internet/phone. We will put phone and internet in our EF, but not until we've provided for the basics.

And then still, if we see no way out, we can skip phone/internet/etc and stretch the EF for another month or 2.

[joyofsix]

I figured basic expenses plus $1000 in case the car breaks down or a tooth gets knocked out during the lay off/job loss.

[frugrrl]

Just the basics (mortgage/food/utilities). I also figure the amount on what the expenses are currently.