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Family of 7 live frugal 100k income how much emergency fund



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amother
OP


 

Post 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


 

Post 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


 

Post 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


 

Post 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


 

Post 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




 
 
    
 

Post 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




 
 
    
 

Post 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


 

Post 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




 
 
    
 

Post 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


 

Post 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




 
 
    
 

Post 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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