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October EF Goal Met

October 31st, 2013 at 12:39 pm

I set a goal for myself for the month of October of getting the Emergency Fund to $7510. Today's weekly auto deposit of $10 from savings put me over that range.

$7508.61 Beginning EF Amount
+__10.00 Amount Added
$7518.61 New EF Amount

My goals for November are twofold. One is to get the EF to $7565.91, which is the one month's expenses milestone, which I am pretty darn close to.

And because I need a higher goal to shoot for during the month of November than $47.30, my primary goal for the month is to get the EF to $7720. That will be a total of $203.39, $140 of which will be provided by the 4 $10 weekly deposits of the month, and my usual $100 monthly transfer to the EF, and leaving me to come up with $61.39 from other areas of the budget.

4 Responses to “October EF Goal Met”

  1. Wino Says:

    I know that this is apostasy, but I just don't see the reason to have a separate account for an EF. I just leave extra money in the checking account. For instance, DW and I just decided to go to see my folks as all of my brothers will be there. I used the credit card to pay, and we'll just write a check. That was about $1000 for the tickets. Now, I know it wasn't an emergency, but it was unplanned, and if you change it to "fix the exhaust manifold on the truck" then it's an emergency.

    Also, why 6 months in a non-interest bearing account? I can see two months sitting around idle, but it only takes a few minutes online to get a mutual fund withdrawal, so why waste the money in a money market? I know that this is what "everyone" says, but I've found that "everyone" is often "plumb loco."

  2. crazyliblady Says:

    @Wino. Perhaps it works for you to have all your money mixed together, but for some of us, it works better to have separate "buckets" for our money. For example, I have a regular savings account, which functions mainly as an emergency account, but I also have 6 other savings accounts, each with its own specific purpose. I have a house account (for home repairs/maintenance), a car account (to replace my car, if the need arises), professional account (to attend conferences for my job), a medical savings account (which will eventually be used to pay unexpected medical bills when they arise), and a AAA/tax savings account (which I use to pay for AAA dues and taxes on the car). I guess I could do a mutual fund like you are talking about, but those kind of accounts typically have a minimum opening amount. I also like to have easy access to my money, but not too easy. I have built in a system, so that it takes at least a day to get money from the savings to the checking. I also have slush money fund, which is money I allocate for in my checking in the event of a small unexpected expense. It prevents me using the credit card.

  3. just a thought Says:

    Mutual fund money may be easily accessible, but it's not guaranteed. What if you need the money but the market's down? You don't want to take a risk with money you may need for an emergency.

    Now, if you mutual fund account balance is so large that fluctuations don't have an impact, then you probably have enough money that you don't really need a labelled emergence fund anyway.

  4. LuckyRobin Says:

    Wino--I don't know what you are talking about. I don't have a money market account or mutual fund. I don't have six month's expenses in savings. As I said in my post I'm working towards completing the first month. I don't have my money in a non-interest bearing account, either. As for separate accounts, that is my choice. Just because something works for you, doesn't mean it works for everyone. I choose to do that because if I left the money in my checking account my husband would see it there and want to spend it. Out of sight, it is out of his mind. He considers savings to be sacrosanct, just not checking. This money is about building up security for our future.

    And going on a last minute trip to see your family should not use emergency funds anyway. That would come out of a travel fund or be cash-flowed, so not sure why you are even using it as an example. Car repair would come out of a car fund or be cash-flowed. An emergency is a power failure that lasts several days or a flood or a hurricane or an earthquake. It is a sudden job loss or a tree falling on your house and needing to rebuild part of the roof. I don't think Emergency Fund means what you seem to think it means and that makes all the difference.

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