If you look at my emergency fund progress bar to the right, you’ll see that I’ve achieved 50% of my goal (thanks to my first paycheck!). That $5,000 means that I’ve got roughly 3 months of living expenses saved up.
That $5,000 could very well stretch to 5 months if I move home during an emergency.
I plan to add another couple thousand of dollars before the year end… it’s an aggressive goal, but I think I can do it.
One of the reasons why I want a bigger emergency fund is because I view it as my combined “job-loss” and “car trouble” fund. I recently had to fix my airbags for around $600… my parents generously paid that bill, but it made me realize that I’d feel much safer if I have enough of a cushion set aside for possible car maintainence and repairs.
Never underestimate Murphy’s Law.
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Congrats! What is it with air bags? The ones on my parent’s car just went bad as well.
Wow, need to make the parents pay for your little bills huh? How sad! They pay for your school and now your bills? Sounds like you’re a spoiled child, based on this and your shoe obsession…
Uh, $600 isn’t a “little bill” by any stretch of the imagination, let alone when you’re a full-time student.
Ignore the first comment. If they don’t like your blog they don’t have to read it.
When I owned a car, I got slapped with a repair bill of $1000, and didn’t have the money to pay it. My dad generously loaned me the money, but I felt so bad about it. Like you with your airbags, that situation made me realize having an EF is so important … especially if you own a car!!
My recent car troubles have totally depleted my EF, so I understand your problems.
Also, I agree with mpagirl. Wow is being rude and not at all nice in his accusations.
Just wondering — how do you figure out your monthly expenses? I think I could put a figure on how much I spend in a year or even 6 months, but my expenses seem to vary so much based on seasons (heat bills, air conditioning bills, etc) and holidays/birthdays that I’d have a hard time figuring out a 3 month amount to keep in savings. How did you come up $5,000 as 3 months’ savings?
I’ve just found your site, and I’ll be following your progress as I also live in CA (bay area). Good luck ignoring the rude trolls as in comment #2
Everyone – thanks for your encouragement. I am very happy about this development & I hope that my car won’t give me any more trouble for a LONG time (knock on wood).
Wow – I know I’m lucky to have parents who are able and willing to give me support (monetary & otherwise). But thank you for reminding me to take a moment and appreciate how lucky I am.