I did it! I finally have six months of savings in an emergency fund!

[Anonymous]

I have been paycheck to paycheck for most of adult life and I finally, only now, in my mid 30s, have the recommended six month emergency fund set aside. This does not include retirement investments, this is just cold hard cash. I’ve only been able to do it by getting a promotion and sharing living expenses with a partner. I need to keep this fund growing because in event of a layoff, it can take often times a whole year to find a job. With severance and UI, I can safely say I have nine months funded. What’s the best way to grow an emergency fund? Should I have a CD ladder or shop around for a HYSA? Are HYSAs worth it with lowering interest rates these days?

[Anonymous]

Woot woot! 🎉 Keep it up OP!

[Anonymous]

Congratulations! I keep mine in a HYSA, but am also looking at other saving vehicles as the rates keep dropping.

[Anonymous]

Congrats OP! Thats a great accomplishment.

The purpose of emergency funds is to have liquid funds immediately ready if/when needed. Rate of return and growth isn’t the intent. HYSA makes most sense. A short term CD ladder is not as liquid but can make sense too.

[Anonymous]

Congrats!!

[Anonymous]

Congratulations!

[Anonymous]

Congrats!!

Once we got to six months, we put two months of it in a CD for a small ROI. And at that point, it is worth it to compare savings account returns. There's a big difference between 1% and 2% when you're talking about tens of thousands of dollars.

[Anonymous]

Adding my congratulations! Good for you.

[Anonymous]

Congratulations!!!

[Anonymous]

Great! Add in half of your tax refund if you get one! And put the other half in a vacation fund or save for some other thing that will keep you motivated.

[Anonymous]

Anonymous wrote:I have been paycheck to paycheck for most of adult life and I finally, only now, in my mid 30s, have the recommended six month emergency fund set aside. This does not include retirement investments, this is just cold hard cash. I’ve only been able to do it by getting a promotion and sharing living expenses with a partner. I need to keep this fund growing because in event of a layoff, it can take often times a whole year to find a job. With severance and UI, I can safely say I have nine months funded. What’s the best way to grow an emergency fund? Should I have a CD ladder or shop around for a HYSA? Are HYSAs worth it with lowering interest rates these days?

That's awesome! Congratulations!

[Anonymous]

Fantastic OP. It's the most important goal because you are unlikely to fall in big debt.

Treat yourself to something you have always wanted and then start working on your next financial goals

Neve stop chasing the bag

Congrats again.

[Anonymous]

This is awesome, OP! I was recently unemployed and am working on rebuilding my fund. It was such a relief when I was applying and interviewing for jobs.

[Anonymous]

Now start paying off your debts.
- track all spending
- sell anything at home that you don't use for cash (even a little bit). Make a dent in your debt
- shop around for lower interest rates to do debt consolidation for all debts but mortgage.
- use any method of debt payment that you prefer - high interest first or low debt first. I prefered paying off debt that was for low amounts. It felt good to think that I have wiped out debt from a couple creditors every few months.

[Anonymous]

Congratulations OP. This is huge.

I agree that you have to keep growing your emergency fund. I would suggest at least a year's worth of savings in the current job market.

Also, become a minimalist. The more you cull your belongings and make-do with less, the more time, money and effort you save. Additionally, you gain clarity, space and lightness.