6 Month Saving "Rule" Questions….

posted 3 years ago in The Lounge
  • poll: Do you have 6 months of savings?
    Yes : (51 votes)
    41 %
    No : (36 votes)
    29 %
    We're getting there but yes it will take us a long time too : (22 votes)
    18 %
    We sometimes have it but we use it as our "regular" savings too. : (13 votes)
    10 %
    Other - please explain! : (2 votes)
    2 %
  • Post # 3
    193 posts
    Blushing bee
    • Wedding: September 2014

    @Sunnyday278:  Right now my FI and I have wayyy more than 6 months savings, but a lot of that will be going into a house next year.  We are trying to keep saving up up so we still have a decent amount in savings, but it really depends on the cost of the house we pick.   We are both extremely lucky in that our parents paid for our college tuition as well as rent.  If I had to pay for both of those things there’s no way I’d have 6 months savings right now.  I think 3 months is way more realistic.  I wouldn’t cut out EVERYTHING fun just to save.  You want to enjoy life for the next 6 years too!!

    Post # 5
    2823 posts
    Sugar bee
    • Wedding: December 2012

    @Sunnyday278:  We threw our work bonuses, and tax returns into our emergency savings as well, which helped build it up fast including our monthly contributions.

    Post # 6
    10453 posts
    Sugar Beekeeper
    • Wedding: January 2011

    I think I’ve had that much before I became an adult.  I saved up money working when I was a teenager, from gifts, from scholarships, etc.  I don’t think all of that money needs to just sit in a savings account though.

    We also have a LOC that we can access pretty much immediately in an emergency.  I wanted that once we had a house.


    Post # 8
    2537 posts
    Sugar bee
    • Wedding: November 2013

    So we technically have 6+ months of expenses in savings but we don’t want to touch it since it’s our “long term funds.”  We’re one month away from paying off my SO’s student loans so we may touch our very liquid savings attached to our checking account to pay it off this month.  We had about a years worth of savings in our liquid funds but felt it was unreasonable to have that much if we didn’t pay of interest bearing loans.  As soon as we finish paying off his student loans loans, we’ll be saving for the 6+ months in the same savings account. 

    With his bonus and our tax refund, we’ll probably have it by March, this way we do not need to touch our long term stuff.  Our long term stuff is really our downpayment for a house fund.  All of this and how fast we’re going to be debt free (by the end of the year) are possible because of a very generous person.  We were working on becoming debt free before and it would have taken us a few years.  We try to live frugally, one car and no traveling.


    Post # 9
    11772 posts
    Sugar Beekeeper
    • Wedding: May 2013

    Are you calculating tax refunds? That’s where DH and I get our fun money/vacation funds!

    Post # 12
    7281 posts
    Busy Beekeeper
    • Wedding: October 2011 - Bed & Breakfast

    Yes, we have 6 months of our expenses in our savings account that is our emergency fund. It is seperate from our planned upcoming expenses fund (which is low right now). We did raid our emergency fund back in the spring when our little tractor unexpectedly kicked the bucket and we decided to go ahead and spend the big bucks to get a much bigger one that should last us for the next 30+ years. But we’ve fully paid it back into our fund, so it’s good to go. We’ve had some pretty big expenses in the last few years (wedding, house, house projects), so we’ve skipped big vacations, haven’t spent as much on ourselves (e.g. I’ve skipped a lot of haircuts/dye jobs, given up my weekly mani/pedi, he’s skipped a lot of his hobby stuff, etc.) in order to make sure our emergency fund is adequate. For us, it’s all about priorities. Our e-fund is a bigger priority than the fun stuff.

    Post # 13
    2537 posts
    Sugar bee
    • Wedding: November 2013

    @Sunnyday278:  By the way, I think you’re doing everything right.  Savings take time to build especially with student loans.  We’re doing a combination of Dave Ramsey and Mr. Money Mustache and our own personal stuff along the way.  Dave Ramsey says 3-6 months worth of expenses saved after you’ve paid off your debts (except the mortgage) and have begun saving for a downpayment on a home.  Here are Dave’s steps.

    Step 1: Save $1000 emergency fund so you don’t rely on credit cards anymore. (Some people make this equal to one month’s expenses).

    Step 2: Pay off all debts using the debt snowball.  So start with the smallest debt and pay it off first while making the normal payments on the other debts, then go to the next smallest debt, etc.

    Step 3: Save 3-6 months of expenses.

    Step 3b: Start saving for a down payment.

    Step 4: Invest 15% for retirement. (His methods of investing aren’t great, research this for yourself and I would encourage everyone to save more than 15%).

    Step 5: Start college funding for children.

    Step 6: Pay off home early.

    Step 7: Be charitable!! Build wealth and give!!


    Post # 14
    965 posts
    Busy bee
    • Wedding: January 2014

    We just have one “savings” and we never let it get below the 6-months of expenses amount. Our 6-month amount is bare bones what we need to live. Food, mortgage/rent, car payments, gasoline and such, but doesn’t include any “fun money.”

    I would say that the money you are putting aside for your “future home” can be your “6-month” money as well. The 6-month money is there for the loss of a job, but it doesn’t need to be an amount in addition to other savings, you just need to have “Oh Shit” money in case one of you can’t work for an extended period of time (or gets fired/laid off).

    Post # 15
    3570 posts
    Sugar bee
    • Wedding: September 2011

    Since you are out of school pretty recently, I’m sure your salaries will really increase in the next few years.  

    Post # 16
    2537 posts
    Sugar bee
    • Wedding: November 2013

    @Sunnyday278:  You’re young and seem eager so I think you’ll be fine. A lot of people realize in their 40s and 50s that they haven’t saved for retirement and still have a load of debt.  Saving/paying off debt early in your marriage and career allows you plenty of time for everything.  Your pay will presumably go up as you age and you and your SO will be used to this standard/quality of life so it’s second nature. 🙂

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