Comments on: Emergency Savings Account. How much is needed?

By: laura k

laura k — Wed, 01 Jul 2009 11:35:37 +0000

I agree that an emergency fund is essential, but I’m not sure a broken dishwasher qualifies as an “emergency.” How about washing dishes by hand until you can save up enough to buy a new dishwasher? It might use a little extra water, but you can make it a family event, and in the long run, isn’t spending time together as a family what matters?

By: Help Jump Start The Economy And Buy A New Car You Can’t Afford | The Passive Dad

Fri, 13 Mar 2009 09:05:05 +0000

[...] making a major purchase like a new car, be sure you have an adequate emergency savings account and that you have a plan for paying down your credit card debt. If you have an adequate savings [...]

By: Teaching Kids about Investing: A New Princess Doll Or College?

Teaching Kids about Investing: A New Princess Doll Or College? — Sun, 08 Mar 2009 19:48:52 +0000

[...] you don’t have the funds to open a savings account, start with an emergency savings account. An emergency savings account is an account for household emergencies like fixing a flat tire or replacing a broken appliance. [...]

By: California Tax Refund Could Be Paid Via IOU | The Passive Dad

California Tax Refund Could Be Paid Via IOU | The Passive Dad — Mon, 02 Feb 2009 13:04:41 +0000

[...] 3. You start or add funds to your emergency savings account. [...]

By: Consumers Spend Less And Economists Say It’s Bad For Economy | The Passive Dad

Wed, 14 Jan 2009 13:02:11 +0000

[...] Americans. Interesting if this trend continues and more people start saving money and creating an emergency account or just saving in general. Maybe you are going to be a trend setter and shed your frugal lifestyle [...]

By: $1500 Reduction In Property Tax Help Your Friends And Neighbors | The Passive Dad

Thu, 25 Sep 2008 13:41:07 +0000

[...] Establish an emergency savings account. Dave Ramsey recommends at least $1,000 in an emergency account. You might be more comfortable with [...]

By: Mary

Mary — Tue, 23 Sep 2008 10:32:04 +0000

We follow Dave Ramsey but my husband did not agree with only having 1K in an emergency fund while we paid off our consumer debt. At first I balked, but after an expensive car repair, he won me over.

His advice is to have enough to cover a major car repair plus the heating system on your home (if you are a home owner.) I think everyone has to tweak this for their own circumstances. 1K would have been enough when we were in college but once you have kids, cars and a home, things get more serious.

For us, 5K was the minimum until we paid off our consumer debt. It saved our necks several times.

By: Scott

Scott — Tue, 08 Jul 2008 21:54:58 +0000

@lulugal Starting is the hardest part. I thank you for sharing your ideas.

@Kacie A 6 month emergency account would be fantastic to have. That would cover most emergencies and then some.

By: Kacie

Kacie — Thu, 03 Jul 2008 21:22:25 +0000

Absolutely! Without even a little bit of savings, one little thing can just wipe you out.

My husband and I have been married for a little over a year. For the first half of our marriage, we aggressively paid off our credit cards. Now, we’re building a six-month emergency fund.

With every dollar we add, I feel a little more secure.

If folks get really intense about achieving a goal, be it getting out of debt or building up savings, they’ll be surprised at how fast you can make the money fly!

By: lulugal11

lulugal11 — Fri, 27 Jun 2008 13:46:56 +0000

Hey whatever you can put into your savings is good. I started my emergency fund putting only $1 a month. Yes, just $1. This was at a time I was a student and making about $450 a month. So $1 was all I could afford.

I slowly increased that amount over the months and worked up to a hefty $7 a month.
My emergency savings grew slower than most people, but hey it was still growing and I was getting lovely interest from ING so it was all good.

I think you just need to get into the mindset of savings and it will work out. A lot of people who say they have no savings are just afraid because they see people talking about putting $300 a month in savings but they do not have that amount to set aside.

They don’t realize that they can start with just $1 and no one will judge them. The $1 builds up a mentality of savings and then it becomes easier to save. Good that you and your wife were able to work on it together because the support really helps.