No You Calculate My Emergency Fund

Wed Feb 28, 2007 1:28:48 pm by Dustin
Filed under Finance, General, Household, Tools and Tricks

If you have ever read about personal finance tricks for making sure you never runs out of money, you know it is suggested to keep three or more months of your estimated expenses available just in case God smites you for something.

So you might be thinking to yourself, well how much money is that really?

That is where I come in.  You see I will do the fun research part for you and tell you fun tricks like this.

Bankrate.com, a quite well known site for money tips, put together an emergency fund calculator.  The math is pretty basic.  In fact it is really just involves taking the expenses of your major spending categories (rent/mortgage, food, utils, transportation, and debt) and multiplying each by the number of months you need to have saved up.  Once you have all these, you would then add the new totals up.  Although Bankrate doesn’t suggested it, but I have heard that others would add an extra, say, 15% to this value just in case your car breaks while you are out of work.

Good luck saving.


  1. Phil

    Additionally if you are in a high-risk employment business like entrepreneurship I would double the three months to six and add all your lifestyle expenditures, you know cellphone, fun stuff, rent, gas, insurance, going out, etc. This really makes sure that you have enough money, because you don’t have to change your lifestyle one iota, if you do your only going to not have to get a job sooner!

    I would also add that you should make an excel spreadsheet that keeps track of all your expenses. It’s pretty easy you just list them out over 12 months, of course these are estimates based on history, but once you do that you can then add a column to each month you just generated for the actual spending. Each month insert the actual spending you just made based on receipts and there you have it exactly what you are spending, pretty low maintenance system, I would estimate about 1-2 hours per month for service.

    Happy Money
    PJ

  2. Phil

    Hey man also, could you burn your comment feed? I would like to subscribe to them so that I can keep track of who’s writing stuff. It is basically just another feedburner feed published.

    Regards, good stuff your postin.

    PJ

  3. Digmann.com » Blog Archive » Phil I Just ‘One Upped’ You

    [...] Yesterday, Phil asked if I wouldburn my comments, meaning he wants to read my comments in an RSS reader of some kind. So I have added a link to my comment syndication in the sidebar for your reading pleasure.  I have also updated to the latest version of Wordpress and have set up a test environment because as of now, I have not found that Wordpress offers this service.  For all of you who do not like RSS Feeds for whatever your reason might be, you can now subscribe to all these posts with fun emails instead.  The form for that is also in the sidebar. [...]