We normally have 4-6 months of ONE income saved up. We wouldn't both be laid off at the same time. Both of us are in very stable career fields.

Anonymous wrote:

Anonymous wrote:None. I don't need an "emergency account", because I have got my shit locked down.

Um, what the hell does that even mean?

1. I make sure I am not going to get fired: if anything, I fire people.
2. I am not going to get sick: I am as strong as an ox, and only eat fruit, vegetables and, on special occasions, nuts.
3. No hurricane is going to destroy my house: it is overbuilt from steel and concrete, not plywood and tyvek.
4. My wife is a thoroughbred, and she has birthed strong children who won't sicken either.

So no, I have no "emergency" account, because I will have no emergencies. In short, I have my shit locked down. I encourage you to lock your shit down too.

Yah insurance is my emergency

Anonymous wrote:

Anonymous wrote:None. I don't need an "emergency account", because I have got my shit locked down.

Um, what the hell does that even mean?

Padlock on toilet.

Start with a goal of 6 months. After you get that to point, relax your emergency fund allotment to half until you reach 1 year.

I would have six months to live well, another six months of bare bones (health insurance, mortgage, and food), and a separate emergency fund for house repairs and other things that come up

I would have six, ESPECIALLY since you're wanting to buy a house. If you don't, the second you buy it something major is going to break and you're going to be screwed. Think long term, don't go for the easy fix - set up the emergency fund and then save for the house. It'll be worth it, I promise.

Remember that emergencies come in many forms - they are not just job loss. They are sickness, death, acts of mother nature, etc. Your job may be stable but if a hurricane comes in and destroys your home and you need a place to stay for a year until it's fixed and insurance pays out, then you need more than 2 months' of expenses. Or if a breadwinner suddenly becomes disabled or dies, you will likely need more than what you have saved so far.

Anonymous wrote:None. I don't need an "emergency account", because I have got my shit locked down.

Um, what the hell does that even mean?

None. I don't need an "emergency account", because I have got my shit locked down.

For my comfort level, it would depend on the house. How new is the roof? How new is the hot water heater / boiler / washer / dryer? Are the windows from the dawn of time? Have the bricks been repointed? Any major tree limbs need to be trimmed?

Been there, done that - all of it within 5 years. It has paid off now, some years later, but it was a doozy there for awhile.

When you move in, the dishwasher WILL break. Trust me.

4-6, and be ready to spend most of it in the first two months.

6-8

Well, at lot of this depends on your comfort level.

But also, just in general for purchasing a home for th first time - owning a home is expensive. There's always a little repair to do, or something you need to buy, or something that's unexpected (The gas bill is higher than you're used to, or there's a fee you didn't know, or you move in and the dishwasher breaks, or something).

So, even though you ant as high a down payment as possible, don't put ALL your money into the down payment. You need a little cushion at that point to be comfortable in the new home.

(you get a slight cushion because of how mortgages are paid - you typically make your first payment AFTER a month, not to start a month, so often you miss a month's housing payment - but with moving expenses, close out expenses from the old place, etc that is gone quickly).

I think the recommendation is to have 6 months of expenses saved up. I'm trying to save for a house, so I'm reluctant to throw all of my savings into an emergency fund. My source of income is steady and reliable. The only hiccup was the shutdown, but even then I would have been paid retroactively. How many months do I really need to have saved up? Right now I have 2 months saved.