I have been sick for four days, but now I am beginning to feel a little bit better. I want to thank all of you who sent your congratulations and comments. You guys rock! I’m going to take a few minutes to answer a few of the questions I have received since reaching my 20K emergency fund goal.
Nickel asked if we could live on just my wife’s paycheck every month. The quick answer is yes, the long answer is no. We can afford to pay our bills if we just live on my wife’s check, but our budget has to be super, super, super tight. I’d say we can “get by” with just my wife’s check (like we are doing this month), but we can’t really “live”.
Nickel also noticed that one of my long-term goals is to save money to purchase a house. (The house we now live in is furnished by my employer.) Nickel asks if I plan to use a mortgage to buy a house, or will I simply save up the money. Again, two answers. Right NOW, if I were to lose my job, I’d either HAVE to rent another home or take out a mortgage to buy another home. BUT, my plan is to save up enough money to actually purchase a home with cash. I know, I know, it sounds strange, but that’s the goal.
Lastly, Golbguru asks why I have such a LARGE emergency fund. The simple answer is that because my house is part of my salary, if I lost my job, I would need enough money to provide not only my salary for 3 – 6 months, but enough money to provide housing as well.
I’ll be hosting the Carnival of Debt Reduction this Monday, so check out the Carnival of Debt Reduction for more information, and get your submissions in now.