I know that building wealth takes time and it doesn’t happen overnight, but I want to know how many months or years did it take you to build a fully funded Emergency Fund. I’m aware that it all depends on the goal amount, but did you or are you treating it as a long-term sinking fund? Please feel free to comment. I wanna learn all about it. Thank you!
Like a year or so to build it as an emergency fund of 3 months. A little longer for 6. No debt though on my end. I had only 1 month of E fund until my student debt was paid.
It took me 8 years, working, saving, while living at home. Saved $75k. I put a down payment on a $125k small condo and paid it off in 5 years. Now I’m saving for early retirement. I saved up by buying what I need, not what I want.
Thank you for your response.
Hard for me to answer. We built up a home deposit and kept back $30K of that money as our main emergency fund. If I was to build this from scratch, it would take us about eight months. But that is while we have a significant monthly mortgage payment, compared to when we built up our deposit while renting (and we lived in a grotty place so we could maximize our savings). Just back of the napkin calcs, if we were in our scummy old place now, it would take us four months. I’m aware that it all depends on the goal amount but did you or are you treating it as a long-term sinking fund? Kind of. I have an automatic deposit into our main EF, which goes in every pay. We also have used that account for renovations over the three years we’ve been here, but it has rarely been below that $30K mark. When it has been lower than that figure, we prioritize building it back up ASAP. At this rate, I’m looking to move $10K as a one-off payment towards our mortgage in January to take our EF back down to $30K. We will likely do that 2 or 3 times a year, because we don’t have much left to renovate (for now!). As an aside, I’ve answered based on the agreed amount my wife and I keep in our main EF, though we have several other sources of funds in an emergency. A 3 month EF is technically just under $26K for us (based on our current expenditure) - but I like round numbers. We will review our EFs at Christmas and it may go up (but I doubt it).
Yeah I’m thinking long term coz I’m ill till I am healed. I’ve read that if one has medical expenses, 12 months will be advisable rather than 3-6 months that is the ordinary. Thank you for your response.