3 months is not enough- they used to advise 6 months
6 months is a great goal to have in mind, Roger. 3 months is also a noteworthy goal if you're looking for something more achievable :) I think it all depends on a person's or family's financial situation.
Lets say I have an extra bit of money…. how do I use it? Let it sit- often not. I like to pay ahead on utilities… I know I use x amount and that wont change… if everything is paid ahead a month or so- it makes it easier to relax
You make a good point, Roger. I'm just thinking of the times I had a volatile income and lived basically paycheck to paycheck with much uncertainty about things like paying for gas and food. It seems like it's easier to save when you have a steady income. I slowly started saving $5 here and $10 there with an online bank that I didn't get a physical card for (so as to not be tempted to take money out). It helped me save $500 initially after a few months! I feel like it's all about saving what you can when you can.
Hey Danielle, do you take advantage of sales, mark downs, promos?
Hey Danielle, do you take advantage of sales, mark downs, promos?
As in when I'm purchasing things? If so, then yes! My local supermarket has a sale every Friday ($5 for a bucket of chicken and things like that), and I always double up savings with coupons from the Coupons.com app.
Now I don't go shopping as often as I used to. It's more of an event/needs base now, but I take advantage of sales on things like BOGO socks.
Do you?
Hiya Danielle. I do take advantage of all of that. I just came from Aldis. I returned some chicken. It just wasnt up to grade.
Not too long ago- the price at thrift stores went up. I found that if I worked the promo I could buy new for close to the same price. This was a change in my life. Most my life EVERYTHING I owned was 2nd hand… and I mean everything.
I allow myself some blow money… a token amount to feel like I been shopping. That stops me from wanting to spend on huge purchases. If you look at ebay… I can send a very small give for under $1. They even ship it. So I done gift for no reason for family and loved ones.
Shannon, I did not have the receipt. I merely wanted a refund. In the past they offered both- this time no. But even if they had, I would have declined. I took back 4 packs of chicken, frozen, no receipt. Even tho cat did not want that chicken. But it was toward expiration and $2 off. I told her that all 4 packs had been $2 off. That way they knew what was going on.
I like the idea of paying ahead of time, but what about keeping that money in your account to collect interest, even if small, rather than allow the utility company to have it?
I like the idea of paying ahead of time, but what about keeping that money in your account to collect interest, even if small, rather than allow the utility company to have it?
Lets suppose I become gravely ill. My family would have no idea how to pay what. So if I am paid ahead a few months it is a non-issue. It is also something I dont have to think of at all. Basically it is juggling. If I pay ahead $50 on utilities, when the next month gets here, I can continue to let it pay ahead, or maybe I want to take a trip… maybe I want to do something else with the money. This house requires electric. water/sewer- unless I Winterize it it will cost so many dollars a day for a human to live in it. That expense is not going to go away. Now lets suppose I paid ahead 6 months, the power company is more than happy to issue a check for the overage if you contact them… which can be done via online email platform these days. I think I asked the electric company twice to send me the overage. Having a roof over head is very important to me. 2019 in my state they turn off the utilities very fast. For the electric if you want it turned on fast, you have to drive an hour to Harrisburg and bring a cashier check…during business hours. The water company had gone up the one year and made my 82 year old neighbor rush 50 cents to the main office. OR she would be shut off and incur a $25 reconnect fee. It was cold Winter. She had paid her bill. but based it on last years rate, not the higher rate. So the dropped everything she was doing over 50 cents. If I have an extra $300 in my pocket, there is a risk that I will spend it on something not connected to running a household.
6 months savings minimum, I think, and this would vary depending on where and how you live.
Definitely 6 months worth. With my large family 2500 wouldn't even cover one month.
I think in part it's what you feel comfortable with.
I have less than 200$ monthly as I recentlu fled violence due to domestic abuse. I welcome ANY tips on how to get through this initial shelter and safety planning phase.
Thanks in advance for any information/ideas. Blessings.
@Unique - So sorry you're going through that :( Are you still paying any bills? A close friend of mine recently had a similar experience, and she was able to find a local shelter.
I hope this site can help you: https://www.domesticshelters.org/
It's so hard to save money on a fixed income
I would try and save that in 6 months, but that is a great goal if you can keep up with it.
I wish I knew what savings was like
We are supposed to have an emergency fund enough at least for a month, with the economy rigth now is hard, we are living one day at the time..
What are some other apps that are good at helping you save for emergencies?
I use www.smartypig.com It lets me set up automatic savings for specific targets. I set up an annual contribution to build my emergency savings. I have added a new account each year to build it up. I am comfortable having an amount to cover ordinary expenses, but as an older person, I am also saving to cover the costs of a medical emergency. I am also able to save for my large expenses (semi-annual auto insurance) on a monthly basis with a specific targeted fund. It has helped me to avoid having to use a charge card for such things.
It ultimately depends on monthly expense and how much risk you are able to take. If my job was highly unstable, i might save up to 6-9 months of emergency fund.
2500 is a great amount but try to get 5000
$2500 is a fine starting place. But I'd keep going until you have at least 6 months income in the bank.
Hello all, Thought I would give my two cents on "Emergency Savings". Emergency savings or fund is supposed to help you when an emergency arises as in job loss, fire, faucet leak, car trouble, dentist, etc The 6 months refers to big emergencies like job loss or health crisis where you aren't working for a period of time and this money will keep you afloat. If you give yourself the goal of saving $1000 first, then build up to 6 mos. of your monthly expenses, you will have a better chance of either staying out of debt or creating a small debt that you can pay off fast. Here's why, most people's emergencies are the small everyday ones like car trouble = flat tire, brakes,, pr dental problem. When these happen you have no cash and have to use credit or borrow to cover them and this throws your whole budget out of whack. Which leads to more problems. So, think of saving $1000 and using it only for emergencies and the 1st time you have to use it you will see the benefits, financially and stress wise and saving will become a lot easier. When you take from it you replace what you used so you are ready for the next emergency(and there will be a next one). Well that's me two cents, Happy Saving!
