After 50 weeks of automatic withdrawals of $30 a week from my checking, my emergency fund account surpasses $1,500!
So I’ve decided that $10,000 is a number at which I’ll be comfortable and then stop the automatic withdrawals for my emergency fund when I hit that number. At this point in my life, $10,000 is a number that make me feel comfortable and that’s what is important. You might read here and there that you should have your emergency funds equal to 6 months of expenses but I feel you should have an amount that ultimately makes you feel secure.
And who knows? You might lose your job and get hit with a large expense that depletes most of your “6 month emergency fund”.
Excellent. This is proof that anyone can save with even small amounts. The end result can be great! Thank you for sharing. This is something that I may consider myself.
CONGRATS!!! 50 weeks is a long time to keep that up!
While i set aside a certain amount each month for different savings accounts… I can’t bring myself to the point of automatic savings…
certain bills i have auto deducted… but right now i need the control of manually moving my cash around. I’m not sure why… but i can’t get to the point of automatic withdrawl… I guess part of me is worried i will screw up somewhere along the line…
Well, it’s easy to keep it up for 50 weeks because I set it up to withdraw automatically. I decided that automatic saving was the best way to build up an emergency fund as in the past any extra funds I have would go towards my brokerage account.
I’m not worried about overdrafts either because ING’s electric orange account offers that wonderful line of credit in case you ever overdraft.