Post # 1
So… weddings are obviously expensive. Plus we just bought a house a few months ago, and I’m starting a new business. I’m feeling… in a word… broke. 🙂 That being said I know that I’m really really lucky that I have the money to do these things and to have a financial cushion in my savings account… but I’m wondering how much most people keep in their cushion?
I guess the reason I ask is because I REALLY want to fence our back yard, but its going to cost about 5k. That is a big hit to my savings. I could say I’m going to put it off until next year, but next year we have a whole list of stuff we’re going to need to buy after the wedding (new car for me, new washer/dryer, patio in the back yard, new laptop, and new tv, oy). So I feel like we should just do the fence and get it over with so we don’t have to worry about it next year.
Before I moved in with fiance, my pre-tax base salary was “x” and I had about 1/5 “x” in savings (not counting what I had set aside for down payment). Which is pretty good because that was maybe 4-5 months of living expenses for me. Now we have this house ($$) plus we need to be thinking about keeping each other afloat if we were to lose a job… I’ve added to my savings but it would only cover about 3, maybe 4 months. FI has almost no savings because he spent it on my ring. And we’re paying for the wedding by setting money aside each paycheck, so we’re not pulling out of savings for that.
If I take the 5k out for the fence, that will bring us down to about 2 months of covering all household expenses should both of us lose our jobs.
But what’re the odds we’ll BOTH lose our jobs? (for the record, we’re in pretty stable places… FI is a corporate accountant in a specialized department working for a BIG company, and I am a civil litigation attorney in a very financially stable tiny firm). How much do most people keep in their savings?
Post # 3
not as much as we should 🙁
but we’re working on paying down our educational debt, so we’ve not able to save the way we’d like to right now.
Post # 4
I’m just at the beginning stages of building up my savings. However I met with an accountant about taxes and such and I think he said that 2 months is the minimum that you should have as a cushion…
Post # 5
i feel ya on the debt 🙂 between the two of us we have about 120k. but the interest is pretty low so we’re just going to trudge along and pay the minimums until we do some other higher-priority stuff.
Post # 6
I don’t keep anything in my savings account right now (though as of May 1st, wedding saving begins). I currently am trying to pay off a lot of bills (student loans, a credit card bill, etc.) so there isn’t typically anything left over to save. I work in a small business about 30 hours a week, and am definitely not rolling in the dough right now. I typically live paycheck by paycheck. Not an extremely comfortable life, but I don’t have a problem working a job I love for a paycheck that could be better.
My FI just got a new job and will be making about 3 times my monthly income, so as far as savings go, his is going to fill up a bit faster. We have both discussed saving for the wedding as well as for our future home and are going to combine our savings (I believe we both agreed on 25% of my weekly checks and 25% of his monthly checks) in one account.
Post # 7
I have a whopping $11 in my bank account, and nothing in savings. Yay college.
Whatever I earn from my part-time work this summer will go towards paying off my student loans, and I’ll build my savings up when I get a “real job,” hopefully this fall. Ambitious me wants to save 5K for a wedding and pay off my student loans by 2012, so we’ll see how much actually ends up in savings.
Post # 8
I’m a saver by nature (both The Guy and I are) and I try my best to put about 25% of my take home pay away in savings each month. I don’t feel comfortable unless I have at least 3-ish months of expenses in savings.
Not saying this at all to be snarky, I’m just curious: $5k for a fence seems really pricey. Does your development require you to have a specific type of fence (or maybe you have a really massive backyard)? Or can you put in something less pricey? We built a new home almost two years ago and we put in a very nice wood fence for about $1200 total, $600 when split with our neighbours.
Post # 9
If you feel uncomfortable spending $ on it, I’d say wait on the fence… realistically I think you’d both be fine, but it sounds like the lack of cushion would weigh on you.
Post # 10
Currently 9 months, but since I’m buying a car next month that will go down to about 3 months (putting ALOT down, over 50%). It makes me so nervous because my job is NOT stable, but my current car is 13 years old and feels like parts are falling off as I drive it so it’s time to get something new.
Post # 11
I had a money freak out this morning.
We are going quite a distance to a friends wedding this weekend, and are spending around $1,000 on the 4 day trip.
We also have to get a new timing belt on my car (500 dollars) and repair a dent that someone left in my car in the parking lot & didn’t leave a note (750 dollars – yeah, it’s bigger than your traditional dent)
Add to that the parents and groomsmen gifts that I have to buy this month as well as put a downpayment on my alterations.
We are easily going to spend $3,000 this month, and I sort of lost it this morning. Ugh.
Post # 12
In the next couple of weeks we will be spending all of our savings! Between buying a house, some furniture, demoing the bathrooms, redoing the floors, and paying for our final vendors, as well as our honeymoon we will be completely broke. We have managed to pay off all of our credit cards but by the time we get married we will be around 8k in debt between the wedding and the house.
We should get money for our wedding so I am hoping to put 10k in savings and pay off some of our debt. I know this will only cover 2 months of household expenses so we will try to build it up as much as possible. I am a little nervous but just hope everything works itself out.
Post # 13
Right now we have 2 savings accounts. We just bought a house, and also really want to put up a fence! We also need a/c. So, we have a savings account that we put money into each check for that, along with one for the wedding. We have both agreed that worse comes to worse we could use that money.
Since we both only graduated school last year we’re still working on paying off our student debt. The goal is to pay that off by the wedding, then start saving. We pay about 1K off our debt each month plus save $400 for the wedding. I’m pretty excited to free up that money!!!
Anyways, I think a good goal is 3-4 months of living expenses.
With a dog, I think the fence is important and I think you should get it!!
Post # 14
My fiance has no savings and 50k in student loan debt. Neither of us have any credit card debt. I have around 2 grand in savings, but am trying to save at least ten percent of what I make each month. I also contribute enough to receive the maximum company match to my 401k. My fiance has talked about taking a second job to help out with bills and start a savings cushion for us. I hate spending from my savings. It makes me feel so insecure.
I don’t know how big your yard is, but 5k for a fence sounds really expensive. I know my parents did their own a few years ago for around a thousand or so. They have a fairly large yard. There might be some ways you can save on that.
Post # 15
Well, lately we haven’t been contributing at all to our savings (other than 401K), because so much little crap keeps coming up. It seems like if one thing goes wrong in your house, it all seems to go wrong!
But we currently have about 3 months living expenses in savings. This will go down some if we don’t keep contributing, because we usually pay property taxes and house insurance out of this each year, as well as hunting lease fees. We are not the best at contributing to our savings weekly, but usually just throw any large chunks of money (ie tax returns, excess 401K refunds, if my husband does side work, etc) in there. I wish we had a better system, but at least we have a decent cushion.
Post # 16
We want to have at least 6 months. You never know if the furnace will break or your car will need a new radiator or something. I would wait a while to buy the fence until you have some more in savings, you don’t want to buy it and then have something huge happen and no cash. Don’t forget that you are trying to save up for living expenses not necessarily replacing all your after tax income. If you were both unemployed, you probably wouldn’t be putting money into savings or going out for lattes every day.
Also since you are starting a new business, I would wait to make any purchases because most new businesses actually lose money and you don’t want to finance that with credit cards.