Post # 1
It is always sad to read about someone losing their job. If both people lost their jobs, then that is devastating. Add planning a wedding on top of all that and things are really bad. It happens on these forums quite a bit, and it’s always very sad to read. I would hope that wedding planning would take a back seat (if they are funding it themselves) if there were no emergency fund in place, but not everyone takes this route.
I have read various articles that say anywhere from 28 to 41% of Americans do not have emergency fund. 50% of Americans cannot come up with $2000 in 30 days according to another article.
Various financial experts say you should have 3-8 months worth of living expenses some where liquid for easy access should you lose your job. The goal is to help you survive until you find that next job while still paying the essentials (rent/mortgage, food, transportation, etc).
How about you? Do you have an emergency fund?
For the poll, the source of funds can be from whatever you consider liquid.
US: H and I would be fine if one of us lost a job. We would opt to cut some things and/or cease some of our retirement contributions, but we would be OK. If both of us lost of our jobs, we have money in our checking (for 3 months of barebones living, a new roof, or a new furnace if needed). We are also considering our Roth IRA contributions (which can be taken out penalty free and any time) to be part of that emergency fund for drastic emergencies only like both of us losing jobs and after the checking was drained. Although the money cannot put back into the Roth, at least it’s earning interest while going unused and hopefully will never be used until retirement. This may not be an option for everyone though.
Post # 3
We do! However, Fiance was unemployed for a year before and the emergency fund did not last too long – but we were still fine on just my income and his unemployment. We have zero debt right now (other than mortgage and his car payment) so not much to worry about.
Post # 4
@MrsWBS: That is awesome MrsWBS! And no student loan or credit card debt either!
Post # 5
We have a general savings right now intended to be an emergency fund, as well as where we’re saving for future purchases like a house or car. There’s enough money in there to last us quite a while if once of us were to face unemployment but, of course, we’d like to stay as far away from that money as possible for as long as possible.
Post # 6
We have savings, but its not necessarily “Emergency fund” Its more than we need for a downpayment when we move so the remainder will be general savings once again/emergency fund.
This is different than our retirement savings (401Ks, Roths, pension, etc) or investments. We could hypothetically liquidate our investments if need be, but that is also earmarked as retirement.
Post # 7
We’d only consider the Roth contributions, but not any other retirement accounts though (I’d definitely leave those alone). Only because the Roth contributions have no penalties to take out at any point.
Post # 8
Unfortunately, DH and I are in a bit of a financial hole right now. It’s partly because of the wedding, but we had more than one surprise that drained our emergency savings. We are trying to get back on our feet, but we should have saved a little more for emergencies.
In the past 6 months, DH’s car completely died and we had to buy a new car (in a rural area, public transportation is not an option). Then our lawnmower and vaccuum both went to appliance heaven. These things weren’t so bad and we figured oh, this is why we have savings, but then an uninsured driver hit my car, and our dog got really sick. Like, emergency-surgery-right-now-or-he’s-gonna-die sick, and letting him die was not an option unless it was for a chronic and painful illness (it was not).
All of this combined with DH’s school loans means we have a bit more debt than we anticipated.
We’re cutting back and pretty much only using money for bills, debt, food, and gas, and still trying to sock away a little bit each month for savings. We’re making it through, but I do wish we’d had more savings to deal with this. And we’re both employed! If one of us lost our job, we’d be effed.
Post # 9
- Wedding: November 2011 - Florida Aquarium
We do, but not as much as we’d like. We could make things work pretty easily on one income with the other having something part time, though.
Post # 10
@anemonie: Oh goodness, that is so much to hit you guys all at once! I am very sorry your dog was so sick too. I hope that emergency fund builds back up before you know it.
Post # 11
We have an emergency fund that could support us for 7-8 months, but DH works at a pretty secure job and him being let go is very, very unlikely. Right now we are house hunting, so those funds may contribute to costs, if need be.
Post # 12
If one of us lost our job, we’d be ok. If we both lost our jobs, we have about 6 months savings emergency fund. Our cars are paid for and student loans are paid off, so we just have the mortgage.
Post # 13
- Wedding: September 2014 - Manhattan Church Rec Center
Right now no emergency fund. We are good, but heaven forbid I was out of work for a month. heaven forbid he lost his job. *crosses self* heaven forbid.
Post # 14
- Wedding: October 2011 - Bed & Breakfast
We have 6 months of living expenses totally liquid (in bank accounts) and several more months of expenses in non-retirement investments that could be liquidated without penalty with 3 days notice to our investment manager. I’ve lived without a financial safety net, and it’s not a good feeling. It’s something I hope to never do again.
Post # 15
We are both PhD students so technically can’t lose a job, but our funding is dependent on us remaining in school of course. We don’t technically have an emergency fund but we have a little more than our combined yearly income in savings, so we could manage if one of us dropped out and lost our funding. It’s our slush fund for when I move and don’t have the right visa to work in his country though.
Post # 16
I’d say we do. Between the two of us we probably have $60k or so in savings and liquid investments. More in long term stuff like bonds.