Monday, February 23, 2009

Emergency Fundy part 2

I received a couple of great comments from my resent "What constitutes use of your emergency fund?" I wanted to address both Christy & Reliantk008's comments in this post.

First to Christy's comment. She suggested setting aside "planned" savings for pet expenses. This would be a fantastic savings goal. Pet's are a loved part of the family and medical care for them can be expensive and unpredictable in their timing. Great suggestion Christy.

RelinatK008 asked how much of an emergency fund a single person should have? He also added a twist as he's a full-time college student. For a starting emergency fund $1,000 is great. $500 if your income is less than $20,000 a year. I'm guessing as a college student his income is less than $20k. A fully funded emergency fund should be no less than three months of living expenses. So, Reliantk008, if I were in your shoes today, I'd like to have between $500 - $1,000 until I graduate from college.

Thanks guys for the great comments and being the inspiration for this post.

2 comments:

Christy said...

I go by CIndy. HA ha - just kidding. :)

I am finding with my own finances recently that less is a real "surprise" then I think about it. I'm trying to start saving for those things.

Anonymous said...

Thanks! A bunch! What are some safe companies to invest in? Should I begin a retirement account if I have just have a part time job here on campus?