Emergency fund

**ironmaiden** · 04-17-2008, 01:01 PM

When times were booming in the late 90's, the financial speakers said that your emergency fund should be 1 to 3 months of expenses. Then after the tech-boom they were saying 3 to 6 months of expenses.

I was just listening to Suze Orman on CNN and she said ONE YEAR emergency fund.

**Dancing Lotus** · 04-17-2008, 01:04 PM

ONE YEAR! Yeah right, I think three to six months is good.

**Lady_V** · 04-17-2008, 01:07 PM

a year

Like that is going to happen at my house

**champagnium** · 04-17-2008, 01:28 PM

LOL....a year is great if I made as much as Suze does :S
I think a couple of months is fine...I'm going to try to save 6 months over the next while in case I get to go on maternity leave, in which case you're off for a year, but only get 55% of your usual salary, so I'd like to try to have 45% of my salary for a year saved.

**mmy2grls** · 04-17-2008, 01:31 PM

Personally 1 month EF would be a big help to me.

I guess it depends on your own situation regarding how much you should have

**ecgsmama** · 04-17-2008, 03:25 PM

MONEY magazine suggested the same thing in the latest issue.

**Sonnenwende** · 04-17-2008, 03:51 PM

I think it is because there is an exploding number of long-term unemployed workers.

**Tango** · 04-17-2008, 04:00 PM

I would love to have a years emergency fund, but I think that's a pretty lofty goal. I'm not sure how anyone on a moderate income would do that. If anyone has congratulations, and let me know how you did it.
_____________________
Krissy

**Jessesbride** · 04-17-2008, 04:23 PM

Once we get to that step we will be working toward having about 6 months wages in an eme fund, however right now, we are still trying to rebuild our baby eme fund (to about $3000) and paying off debt.

you know how it works... 3 steps forward 2 back... but we're getting there! the $600 we had to pay to state for taxes

pretty well sucked, but at least we're getting a tax refund back

for over $2000 (which at first didn't seem like we'd get ANY back other than to pay our tax preparer off)... & we had the $600 in eme savings! Eventually, we will be trying to have 1-2 YEARS yes YEARS of EME savings... but that will be awhile!

Kim

**emily_hope** · 04-17-2008, 06:23 PM

Wouldn't it be wonderful to have an emergency fund that would cover you for a year? I'm sure there are people who have such. I think 3 - 6 months is sufficient for me. I could cut down to the bare bones and survive if anything were to happen.

**Marie78** · 04-17-2008, 06:26 PM

This year I am working on debt pay off and a baby EF. After the debts are all paid down I plan on beefing up my EF and it will take me at least a year to save 6months of bare minimum expenses. It would take 2 years for me to save 1 year bare minimum of what I would need to live on. No frills, just: rent, gas, car ins., food, utilities. That means I would need 3 years total from now to pay off all current debts and save an EF to cover a bare minimum of expenses. That's hoping nothing major develops financially in that time frame. Phew!!!!!

**LexTysMommy** · 04-17-2008, 07:21 PM

Wow a year? I cant imagine. Well maybe that will be my next goal, since I have saved 2 months. Which was my initial goal. I think I will do it month by month.

**AspiringToBeFrugal** · 04-17-2008, 07:27 PM

I think between 3-6 months would be fine for us...not that we're rolling in the dough, but I think this would help us when we start looking at having children.

**brainyblonde** · 04-17-2008, 07:33 PM

I've got about 6 months saved, but want at least a year. I have $200 per month deducted from my pay and put in a credit union savings account. I move some of the money into cds (staggering them) to earn a little more interest.

**Holly** · 04-17-2008, 07:37 PM

We were talking about this the other night.
I have to agree with Suze on this one.
The way things are going and it gets much worse. the people who do have a years worth put away will be able to weather the storm.
I hope to get mine up there some day. It will take a while but I am aiming for 1 years worth...