Comments on: Rebuilding Cash Reserves

By: NW

NW — Thu, 02 Jul 2009 16:42:16 +0000

Don’t reduce your contributions for retirement. Just because your reserves are low right now doesn’t mean you should cheat yourself in the future! Taking a “hit” on taxes is stupid – keep contributing the money tax-deferred and find other ways to scrounge…

By: DB Cooper

DB Cooper — Fri, 26 Jun 2009 01:18:53 +0000

Regarding PS question regarding cash reserve vs. emergency fund…this is what I do: I maintain multiple sub-savings accounts at my credit union. For example, I have a 1) next auto fund, 2) family health fund, 3) family fun fund, 4) home improvement fund, 5) income security fund, 6) emergency fund. Every payday, a certain amount is automatically transferred into each sub-account.

I like that if we need a dental or vision co-pay, it comes from the health account…if we need work done around the house, it comes from home improvement…and next time we need a vehicle…

Our emergency account is for true but regular emergencies – appliance goes, brakes fail, etc. We keep this at $1000, and when it dips below that, we resupply it. Our income security fund is a work in progress. The purpose of this fund is to offset the long-term loss of one of our incomes. Our goal is six to eight months of living expenses; perhaps 10,000-12,000 dollars. We’re on our way, but not there yet. Being a ten-year teacher, my income is very stable anyway…but just in case…

By: PS

PS — Thu, 25 Jun 2009 04:47:03 +0000

NCN,

Would you have 6 months expense and also emergency fund in other account? what do you and other pf blogger recommend?

I would prefer both, but it becomes too much cash sitting, not earning much (in savings) and not reducing debts. What is everyone’s take on it?

Curious…

By: Lisa Lyne

Lisa Lyne — Wed, 24 Jun 2009 13:11:13 +0000

It is important to save enough money always, I have some bank accounts you know, someday i will use them. I encourage you to keep saving money.

By: Cynthia

Cynthia — Tue, 23 Jun 2009 02:24:06 +0000

Wow! You were really out of control there for a while, what with the crazy purchases and all! Kidding of course but I understand about the need to reign it back in, even when you haven’t necessarily gone crazy with the spending. We’re doing that too after being a little lax on our budgeting and discretionary spending the past month or so.

And I would have to say that although that $1500 price tag does sting a bit more now that we’re paying with cash too, there is something so freeing about knowing that the purchase is done and over with and I won’t have to be paying for that purchase for the next x number of months!

By: Terry Lange

Terry Lange — Tue, 23 Jun 2009 02:03:21 +0000

How do you like the Mac? I am looking to get one once I save enough cash. Is it a big adjustment from a Windows based PC?

By: NCN

NCN — Mon, 22 Jun 2009 23:11:48 +0000

@Ryan, At the beginning of the year, I think we set our goal at roughly 30%? It’s something like that. My 403(b), my Roth, my wife’s Roth, her pension, and the work related SEP IRA…

By: Ryan

Ryan — Mon, 22 Jun 2009 21:50:53 +0000

15% not bad. Just curious, what % of your gross household income do you normally contribute to retirement savings?