Emergency fund

[phydaux]

I hear this a lot, 3 months, 6 months etc. worth of expenses. I’ve saved $6000 for my emergency, which I don’t touch & is in a high earner savings acc. This would only last me approx 9 weeks, which isn’t a lot.

That’s food, fuel, rent in this high cost environment. I feel 10k should be a good target for myself, would be over 3 months if I was jobless. Idk, I back myself to find work within 3 months personally, even if it’s an average pay to get me through.

Thoughts? I also heard over 50% can’t find $5000 without borrowing, which is pretty shocking so it’s nice to know I’m not in that category. I would like to have more, just in case though. Im adding to this each pay-check.

 

[specs18]

@phydaux I personally keep 10k as an emergency fund. There isn’t a one amount fits all answer but generally 3-6 months worth like you said.

You’re doing well tho, 6k is a great to have for a series of rainy days.

 

[phydaux]

@specs18 Noted. I booked a holiday end of the year, I could’ve used that and had my 10k, then saved for the trip. In hindsight, this would’ve been smarter. Good to do nice things though and I haven’t travelled, ever.

 

[amerigo]

@phydaux There's something to be said for travelling and seeing the world!

Especially if you're in the phase of life where that's easy to do and enjoy. More responsibilities and family can make it challenging and/or stressful to find the time for a decent holiday overseas.

 

[phydaux]

@amerigo This exactly. Early 30s, no kids.

 

[ligm]

@phydaux We spent more than half of our emergency fund on a holiday (and paid it back). It was worth it!

I would take the 50% figure with a grain of salt - I’m sure it will include those with offset/floating mortgages who are overpaying all their savings into them, but can draw down easily in an emergency.

 

[resjudicata]

@specs18 How do you make an emergency fund ? I already have a savings account, does that mean I need another savings account? I sure as hell ain’t goin bk to havin a money box…. Damn house got fuckin burgled and fools took me money

 

[kenneth320]

@phydaux Just sharing my experience,

I was diagnosed with cancer end of 2022 which stopped me from working (still haven't gotten back yet), because if this I had to call on my income protection insurance

BUT, I have a 3 month stand down period before it would kick in. I made sure I had 3 months of savings ready for that exact reason, KiwiSaver hardship doesn't do anything untill you have creditors knocking at the door OR you can not pay for lifesaving treatment.

Just one of those things to keep in mind even if you had something like income protection or something.

Great job getting 6k saved , as you said most people can't save 5k

 

[amerigo]

@kenneth320 Damn, cancer sucks. I hope you kick its ass!

 

[treverend]

@kenneth320 All the best. Fuck cancer.

 

[shibblydibbins]

@kenneth320 All the best you are going to kick the cancer de

 

[deandrade]

@phydaux we’ve got $50K as our emergency fund in case we have to replace drains or fix a retaining wall.

 

[phydaux]

@deandrade I’d have to own a house first one step at a time.

 

[deandrade]

@phydaux make sure it’s not an old money pit like ours!

 

[jeliz]

@deandrade It's only a money pit if you feed it, ours is getting hungry.

 

[onieu]

@deandrade Yeah we have similar. It’s hard out there atm

 

[lassoiovivo]

@deandrade I think 50k is probably about right for an emergency fund in this country. Expenses add up fast here

 

[ruva]

@deandrade Have you had your drains inspected?

 

[deandrade]

@ruva they’re over 100 years old - we had major roadworks on the street which caused cracks and leaks so the contractor did some work on them. fingers crossed they’re ok for now.

 

[ruva]

@deandrade If you haven't, get them water blasted and inspected with a CCTV camera. I've seen plenty of 100+ year old drains that are surprisingly still in tact, even down here in quake city.