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KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
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Emergency Fund
It's highly likely that DH will be getting laid off. How much money should an emergency fund consist of? I have a CC that I would like to pay off so we can save the additional monhtly payment but, I'm afraid to let the money go from savings esp, if we may need it.
Message edited 2/19/2009 1:14:25 PM.
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Posted 2/19/09 1:13 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: Emergency Fund
i *heard* 6 months income.
but that is a FANTASY in my world...
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| Posted 2/19/09 1:18 PM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
Name:
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Re: Emergency Fund
ideally 9 months to a year. I would say 6 months of living expenses at a minimum. Especially in this economy
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| Posted 2/19/09 1:18 PM |
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leighla
Support Cancer Research
Member since 5/05 16353 total posts
Name:
Lauren
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Re: Emergency Fund
I've always heard at least 3 months' worth of expenses.
But ideally 6.
I don't know anyone who has 6.
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| Posted 2/19/09 1:19 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Emergency Fund
Just this morning I hears Suze Orman say that 8 months of living expenses is what you should strive for. I don't know anyone with that much liquid cash on hand that is not a millionaire already.
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| Posted 2/19/09 1:34 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Emergency Fund
Traditionally it was 3 months living expenses, but in this economy, where it's much more difficult to find a new job, I would have at least 6 months, if not more.
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| Posted 2/19/09 1:48 PM |
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freshstuff
I would do me
Member since 5/08 1188 total posts
Name:
Michelle
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Re: Emergency Fund
I've always heard 6 months but I think it's impossible to know what your costs would truly be. We have the same expenses every month but then every so often we get hit with what I call "the air foundation" it's basically an expense that comes out of no where like multiple root canals, tires or worse a transmission.
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| Posted 2/19/09 2:27 PM |
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ARIELSMOM
Love my Babes
Member since 8/05 5889 total posts
Name:
MEREDITH
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Re: Emergency Fund
Posted by KeithHernandez
i *heard* 6 months income.
but that is a FANTASY in my world...
Mine too we have a couple thousand dollars just incase- but not 6 months actually not even 2 months salary combined.
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| Posted 2/19/09 2:46 PM |
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isabelle2137
LIF Adult
Member since 12/06 1076 total posts
Name:
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Re: Emergency Fund
I have one year of mortgage payments plus utilities saved in the event one of us loses our job.
There's more I would love to do with this money, but I can't justify parting with it right now.
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| Posted 2/19/09 2:50 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: Emergency Fund
Posted by LSP2005
Just this morning I hears Suze Orman say that 8 months of living expenses is what you should strive for. I don't know anyone with that much liquid cash on hand that is not a millionaire already.
Suze says 8 but at a minimum it has to be 6 months of what YOUR personal living expenses are. So if you make $x a month after taxes then you need to $x multiplied by 6. Its more in the thousands but its doable. 
ETS I hope your DH is okay! 
Message edited 2/19/2009 2:54:32 PM.
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| Posted 2/19/09 2:53 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Emergency Fund
Also, keep in mind that if you lose your job, your health insurance may increase dramatically if you are on COBRA. 6 months of living expenses with your employers insurance policy may equal 3 or 4 months with COBRA! 
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| Posted 2/19/09 3:37 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Emergency Fund
dave ramsey says:
if you see storm clouds looming (ie maybe laid off), you want to stockpile ALL the money you can. pay only the minimums on cc's.
he recommends 3-6 months of living expenses.
check out his website.... WONDERFUL!
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| Posted 2/19/09 3:42 PM |
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sj-girl
Happy Family of 4
Member since 5/08 5654 total posts
Name:
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Re: Emergency Fund
on the today show this morning susy orman said 8 months, not sure if thats correct, me and dh only have about 3-4 months
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| Posted 2/19/09 4:05 PM |
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MrsB-07
proud RELAXIVIST
Member since 11/07 2027 total posts
Name:
b
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Re: Emergency Fund
I think 6 months at least.
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| Posted 2/19/09 5:05 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Emergency Fund
Posted by libby2595
dave ramsey says:
if you see storm clouds looming (ie maybe laid off), you want to stockpile ALL the money you can. pay only the minimums on cc's.
he recommends 3-6 months of living expenses.
check out his website.... WONDERFUL!
Suze Orman says the same thing about paying off credit cards.
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| Posted 2/19/09 5:22 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Emergency Fund
I totally agree about paying the minimum if you are seeing bad stuff coming.
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| Posted 2/19/09 5:37 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Emergency Fund
Posted by Blu-ize
I totally agree about paying the minimum if you are seeing bad stuff coming.
me too- I would hold on to all the cash I could
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| Posted 2/19/09 5:50 PM |
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Re: Emergency Fund
I have heard that your cushion should be 6 months to a year's worth of salary. I don't think that is realistic for most people in NY, though.
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| Posted 2/19/09 6:36 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: Emergency Fund
Posted by libby2595
dave ramsey says:
if you see storm clouds looming (ie maybe laid off), you want to stockpile ALL the money you can. pay only the minimums on cc's.
he recommends 3-6 months of living expenses.
check out his website.... WONDERFUL!
ITA. 3-6 months depending on wheter you are a one or two income household...however in this economy I would say the more the better. Dave Ramsey is awesome...love his books. Highly reccomend reading them.  for your DH.
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| Posted 2/19/09 9:00 PM |
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OStewarts
LIF Adult
Member since 11/07 1096 total posts
Name:
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Re: Emergency Fund
I always thought the general rule was 3-6 months of expenses. I also think that's an insane amount of money to keep liquid and to have on hand but I do know people who have modest jobs and have that kind of money in the bank. They're savers and for some of them - its a family tradition to save most of their earnings.
I think people need to save as much as possible in times like these. If you have cc debt, I think its also wise to pay more than the minimum but perhaps not as much as you would pay if you were not trying to build up your emergency fund. Otherwise, you'll never get rid of it and that's such tough debt to have if things go bad.
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| Posted 2/19/09 9:00 PM |
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