I have to confess something. We’ve been running with a dangerously low emergency fund balance for quite some time. It all stems from building the lake house and all the costs associated with doing that. We have finally caught up with everything from construction and are working hard to start building our emergency fund back up.
How bad is it? Well, we are currently running with about $13K in our emergency fund. While that might sound like a fair amount to some people, it isn’t enough for us to feel comfortable in case of a job loss. We have decided to set a new goal of $30K and are already under way to reach that goal. With our recent clamping down of spending we anticipate that it will take about 10 months to reach our goal. That target gives us a little bit of wiggle room so my hope is that this will be a case of under promising and over delivering. If we can stay focused, we should be able to do it in about 8 months. I’ll post our progress along the way.
If you don’t hear from me on this subject or we seem to be falling behind in meeting our goal, I’d appreciate some pushing and mocking.
Are you a subscriber of Everybody Loves Your Money? If not, please consider adding ELYM to your Reader.