Comments on: Dave Ramsey’s 7 Baby Steps: Step 3 – 3 To 6 Months Of Expenses In Savings

By: threadbndr

threadbndr — Wed, 18 Feb 2009 19:58:55 +0000

I’m with RateNerd – laddered cds are great for part of the efund. Not all, though.

The laddered fund is great for a layoff – you will get access to a bit at a time, paying yourself a paycheck in essence. BUT – You still need to cover the “roof, car, medical” type of emergencies, so part of the efund still needs to be in a quick access, fully liquid account.

By: The Passive Dad

The Passive Dad — Tue, 17 Feb 2009 19:24:41 +0000

Our goal is to have 2 years of emergency savings set aside. With the current economic climate our goal is to save as much as possible. I think 6 months is a good goal, but it can go quickly if one spouse loses a job and can't find work for a few months. Also, a parent might need to go back to school or take a part-time job and the emergency fund could be depleted quickly. The Passive Dads last blog post..Money Saving Tips From ehow Friends

By: RateNerd

RateNerd — Tue, 17 Feb 2009 15:28:21 +0000

Completely agree with having 6 months expenses set aside. Once you do that, you also need to put it into a CD ladder to have access and keep it growing. Here is a simple "how to" if you're interested : RateNerds last blog post..How to build a CD ladder

By: Trevor - 14 Year Old Blogger

Trevor - 14 Year Old Blogger — Tue, 17 Feb 2009 01:04:32 +0000

This is what I tell my readers. Have approximately half the year of expenses in your bank account!

Thanks

By: thisisbeth

thisisbeth — Tue, 17 Feb 2009 00:25:30 +0000

Perhaps I’m too cautious, but I believe if you are the only income-earner in the household–whether single or married–six months should be what you’re shooting for; if you have dependents, your amount will be greater than someone single, simply due to extra people to feed/clothe/shelter.

A dual-income family (whether with dependents or not) might be able to get by on three months (although not ideal), because odds are pretty low that both income-earners will lose their income at the same time. Of course, your mileage may vary.

By: Kacie

Kacie — Mon, 16 Feb 2009 20:42:44 +0000

We have 6 months worth of expenses. One thing that’s important is to revisit this number on a regular basis.

As our expenses and spending change, we need to make sure that our savings can still cover us as long as we thought!

By: Miranda

Miranda — Mon, 16 Feb 2009 15:53:24 +0000

Even though it has always been important to be prepared like this, it is vital now. You don't know what might happen. Thanks for sharing this. Mirandas last blog post..Online Personal Finance Resources