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Forum
-> Household Management
-> Finances
amother
OP
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Wed, Dec 30 2020, 6:26 am
Title says it all. I am just confused about how much to keep in the savings account for 3-6 months emergency savings. Is it 3-6 months if we are literally living at our most simple or 3-6 months of normal expenses. Right now we have 50k. Does that sound right? Our actual expenses when we live frugal are around 9k per month.
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amother
Tan
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Wed, Dec 30 2020, 6:30 am
That's great! Yes, the 3-6 month emergency fund is in case you lose income temporarily ch"v. For that, frugal-level expenses are just fine.
Now start investing!
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amother
OP
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Wed, Dec 30 2020, 6:32 am
amother [ Tan ] wrote: | That's great! Yes, the 3-6 month emergency fund is in case you lose income temporarily ch"v. For that, frugal-level expenses are just fine.
Now start investing! |
TYSM!!! So just wasn't clear from your post - you're saying 50k savings for now is okay?
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amother
Tan
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Wed, Dec 30 2020, 6:41 am
I would definitely think so! That's close to 6 months of expenses, which is a nice sized cushion.
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amother
Burlywood
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Wed, Dec 30 2020, 7:11 am
Kol hakovod! My question is what's your secret? How is a family of 7 living on on 100k a year? Are you oot? And the math seems difficult. 9k expenses a month would be 108k a year without any extras for simchas or unexpected expenses.
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baby12x
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Wed, Dec 30 2020, 7:41 am
I would do 6 months of being frugal- if you are also investing and saving other places (index funds, retirement etc).
I wouldn't say 6 months is enough savings- just enough emergency fund.
If that makes sense?
Also- look at your insurance policies (home, medical, auto) and make sure that you have enough in your emergency fund to fully cover your deductible
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mommy3b2c
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Wed, Dec 30 2020, 7:46 am
If your expenses are $9000 a month then you are in major debt. How did you manage to
Save 50,000?
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amother
Tangerine
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Wed, Dec 30 2020, 7:51 am
I want to know how anyone says that 6 months is enough. My DH has been out of work since the beginning of COVID. That is way past the 6 month mark.
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lamplighter
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Wed, Dec 30 2020, 7:52 am
amother [ Burlywood ] wrote: | Kol hakovod! My question is what's your secret? How is a family of 7 living on on 100k a year? Are you oot? And the math seems difficult. 9k expenses a month would be 108k a year without any extras for simchas or unexpected expenses. |
my understanding is that the emergency fund us 3-6 months of bare expenses. Its literally in case of an emergency so you can survive and get back on your feet, its not 6 months of income or 6 months of expenditures.
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amother
Pearl
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Wed, Dec 30 2020, 8:59 am
amother [ Burlywood ] wrote: | Kol hakovod! My question is what's your secret? How is a family of 7 living on on 100k a year? Are you oot? And the math seems difficult. 9k expenses a month would be 108k a year without any extras for simchas or unexpected expenses. |
Could she mean after taxes? Because I agree something isn’t adding up
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cat81
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Wed, Dec 30 2020, 9:19 am
amother [ OP ] wrote: | Title says it all. I am just confused about how much to keep in the savings account for 3-6 months emergency savings. Is it 3-6 months if we are literally living at our most simple or 3-6 months of normal expenses. Right now we have 50k. Does that sound right? Our actual expenses when we live frugal are around 9k per month. |
sorry but title doesnt say it all.
ages of kids - makes diff if kids are babies or HS seniors
supporting anyone - kids or siblings
$100k pre or post tax
$9k counting tuition
parents/in-laws that can help out if need arises
investment accounts including 401k,IRA....
equity in home
types of jobs currently holding
1 or both parents employed
etc...
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