A few months ago, the hubs and I decided to separate a certain percentage of our savings aside for an emergency fund. This would be a fund that we would never touch unless – well – an emergency comes up. Emergencies such as job loss, medical expenses or huge unexpected costs. Before we put the offer on the house we had made sure we were at 6 months of expenses. My 101 in 1001 goal was to get it up to 9 months.
Well, after buying a house, and having insane amounts of costs towards furniture and other house goods, we have still managed to up the fund. So now we can successfully live for 9 months on zero income if we had to. Woo hoo!
This doesn’t go without sacrifice though. We’ve drastically cut back on everyday expenditures, and have tried to minimize the money we put into the house. Plus I’m now officially paying back my student loans (which means we’re working on THAT goal too!) so we’re hoping to continue our minimal spending to put even more money into our other savings.