http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/ Debt Reduction Rocks - We Are Living Debt Free! Fri, 10 Feb 2012 00:09:10 +0000 hourly 1 http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/comment-page-1/#comment-154825 Hannah Mon, 30 Mar 2009 16:59:24 +0000 http://www.ncnblog.com/?p=2308#comment-154825 Ok, that makes sense! Phew, I was wondering how my budget got so out of control! In that case, our numbers are roughly similar. We have enough saved to replace both of our salaries for four months. That said, we consider our Emergency Fund and our Non-Retirement Savings to be one and the same. I hope never to go below 3 months (of both our salaries) in the emergency fund, and ideally I'd like a totally separate fund for other savings goals (i.e. a house someday, maybe a car someday). But in reality, this is just our savings, period. Ok, that makes sense! Phew, I was wondering how my budget got so out of control! In that case, our numbers are roughly similar. We have enough saved to replace both of our salaries for four months. That said, we consider our Emergency Fund and our Non-Retirement Savings to be one and the same. I hope never to go below 3 months (of both our salaries) in the emergency fund, and ideally I’d like a totally separate fund for other savings goals (i.e. a house someday, maybe a car someday). But in reality, this is just our savings, period.

]]> http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/comment-page-1/#comment-154815 NCN Mon, 30 Mar 2009 16:35:45 +0000 http://www.ncnblog.com/?p=2308#comment-154815 @Hannah - The 20K would replace one of our salaries for 6 months... not both... That being said, should we both lose our jobs, we could get rid of all "wants" and simply live on a bare bones budget of just "needs"... @Hannah – The 20K would replace one of our salaries for 6 months… not both…
That being said, should we both lose our jobs, we could get rid of all “wants” and simply live on a bare bones budget of just “needs”…

]]> http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/comment-page-1/#comment-154814 Hannah Mon, 30 Mar 2009 16:28:34 +0000 http://www.ncnblog.com/?p=2308#comment-154814 $20k is six months of expenses for your entire family? So you spend a total of $40k a year? That's amazing, really low. Where do you live that you have such a low cost of living for a family of five? $20k is six months of expenses for your entire family? So you spend a total of $40k a year? That’s amazing, really low. Where do you live that you have such a low cost of living for a family of five?

]]> http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/comment-page-1/#comment-153347 Bill McCollam Sun, 22 Mar 2009 22:00:42 +0000 http://www.ncnblog.com/?p=2308#comment-153347 Good post. I think there is a huge difference in financial attitude before and after debt. I classify everything while in debt as defensive... (ie consolidated a pay down debt, get a budget etc...). After paying debt down - then it's okay to go offensive (ie save). And counter-intuitively - judicious use of credit is important here to. Eg. http://www.mccollam.com/jakeblog/2009/03/i-aint-got-no-money-honey/ Good post. I think there is a huge difference in financial attitude before and after debt. I classify everything while in debt as defensive… (ie consolidated a pay down debt, get a budget etc…). After paying debt down – then it’s okay to go offensive (ie save). And counter-intuitively – judicious use of credit is important here to. Eg.
http://www.mccollam.com/jakeblog/2009/03/i-aint-got-no-money-honey/

]]> http://www.ncnblog.com/2009/03/21/debt-reduction-and-the-emergency-fund/comment-page-1/#comment-153294 RAJEEV @SAVING TIPS Sun, 22 Mar 2009 11:24:20 +0000 http://www.ncnblog.com/?p=2308#comment-153294 Great Post.. I belive that the first step in anyones financial planning should be build an emergency fund. Offcourse if you have debt pay it off and then do it. One must have anything between 6 to 8 months of expenses as your emergency fund. Invest it in near liquid instruments like FD, liquid funds etc so that its accessible when you actually need it. Also most important thing is not to use it for anything other than real EMERGENCY... Great Post.. I belive that the first step in anyones financial planning should be build an emergency fund. Offcourse if you have debt pay it off and then do it. One must have anything between 6 to 8 months of expenses as your emergency fund. Invest it in near liquid instruments like FD, liquid funds etc so that its accessible when you actually need it. Also most important thing is not to use it for anything other than real EMERGENCY…

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