I have 14k in my emergency fund and I am now in a position to start contributing to it more aggressively. Here is my current situation:
-Wife and I make 125kish/year combined.
-We have a 1 year old, no more children planned.
-Our CC debt is pretty low and cars and student loans are almost paid off.
-We don't have a house, we rent. We would like a house in the very near future but our market is shit.
Questions:
-I have heard the six month recommendation often, is that still a good length of time for a fund?
-I imagine that it's 6 months worth of expenses and not income because if that was the case, it would be a pretty high amount. I imagine I should only budget for the basic bills that I would have no option but to pay. Cable would be canceled, for instance. I would like to hear opinions on what else is expendable here. I don't have a lot of bills but they are expensive, rent is 1500 and daycare is 1000 so that's 2500 right there. I need a phone to receive calls, need internet. I think the only thing I could drop would be life insurance but wouldn't it be more expensive when I redo it? Maybe I keep my kid at home so I save 1k. Assuming that one of us lost a job.
-What's a good timeline to hit the goal? I've heard that ideally I should try to accomplish my goals concurrently so would it be better to stretch out the timeline so I can put money into other things like a 401k?
Other thoughts/suggestions?
Thanks.
EDIT:
I should note that our CC debt is low enough to where we do not pay interest so I don't think there is a rush to get this paid.
Submitted May 03, 2018 at 10:32PM by Both_Count https://ift.tt/2Id1tRy
