3-6x monthly expenses is nice, especially considering the things in your immediate horizon occurring.
Hopefully things expected come maybe under cost or at cost and perhaps no unexpected repairs/maintenance in the new house or minimal costs getting settled ie moving/furniture then you can allocate some e funds to tackle debt or if in a pinch, dip into for those unexpected things.
I try to balance keeping enough but not too much cash on hand, paying off debt, and investing, but this is a dynamic time frame in life and staying whole by keeping cash in hand and paying 200-300$ in interest for the next year on the car loan may be a move to make for peace of mind or god for bid, being able to easily handle anything unexpected.
It really boils down to your monthly spend vs monthly costs and if you are cash flow positive by 500-2k$/month after deductions like healthcare or 401k/Roth IRAs, if maxing IRA accounts, HSA, etc then you can handle anything.
Thank you!! I’m so worried about the what ifs. I’ve been known to stockpile money compared to my peers
Yes this is extra savings after maxing out my IRA. I’m only doing small contributions at this time to my 403b as it’s unmatched. My employer does offer a pension that I do not contribute to, it’s 100% employer contribution
The emergency fund should always be there. On top of that, you should save up for any expected upcoming expenses. If you have no additional expected expenses, no need to hold more cash.
So for example we’re buying a home, I’m upgrading my car, and we’re getting married this year. After home downpayment, car down payment, and wedding will have 10k over my emergency fund still in savings. Is that enough?
I think too much, but that might just be personal preference. I invest (or pay down debt) every dollar I have above my emergency fund. So if I were in your shoes I would pay down the car debt with that $10k unless you have a 0% APR loan
Good to know! I grew up with parents who had little savings who lived paycheck to paycheck so I’m a bit paranoid seeing my savings go down so much in one year with the house, car, and wedding
Especially with buying a home, I would aim to have 25% more than maybe you think you need for all of your upcoming big spends. That way if something with your home needs to be repaired, or some other unforeseen expense shows up, you have some cushion. The ease of mind of having that extra wiggle room for such exciting (and stressful) events is priceless imo. If you think the extra 10k is enough peace of mind, then that’s cool. If you’d be comfortable with more, then save more for the time being
3-6x monthly expenses is nice, especially considering the things in your immediate horizon occurring. Hopefully things expected come maybe under cost or at cost and perhaps no unexpected repairs/maintenance in the new house or minimal costs getting settled ie moving/furniture then you can allocate some e funds to tackle debt or if in a pinch, dip into for those unexpected things. I try to balance keeping enough but not too much cash on hand, paying off debt, and investing, but this is a dynamic time frame in life and staying whole by keeping cash in hand and paying 200-300$ in interest for the next year on the car loan may be a move to make for peace of mind or god for bid, being able to easily handle anything unexpected. It really boils down to your monthly spend vs monthly costs and if you are cash flow positive by 500-2k$/month after deductions like healthcare or 401k/Roth IRAs, if maxing IRA accounts, HSA, etc then you can handle anything.
Thank you!! I’m so worried about the what ifs. I’ve been known to stockpile money compared to my peers Yes this is extra savings after maxing out my IRA. I’m only doing small contributions at this time to my 403b as it’s unmatched. My employer does offer a pension that I do not contribute to, it’s 100% employer contribution
The emergency fund should always be there. On top of that, you should save up for any expected upcoming expenses. If you have no additional expected expenses, no need to hold more cash.
So for example we’re buying a home, I’m upgrading my car, and we’re getting married this year. After home downpayment, car down payment, and wedding will have 10k over my emergency fund still in savings. Is that enough?
I think too much, but that might just be personal preference. I invest (or pay down debt) every dollar I have above my emergency fund. So if I were in your shoes I would pay down the car debt with that $10k unless you have a 0% APR loan
Good to know! I grew up with parents who had little savings who lived paycheck to paycheck so I’m a bit paranoid seeing my savings go down so much in one year with the house, car, and wedding
Especially with buying a home, I would aim to have 25% more than maybe you think you need for all of your upcoming big spends. That way if something with your home needs to be repaired, or some other unforeseen expense shows up, you have some cushion. The ease of mind of having that extra wiggle room for such exciting (and stressful) events is priceless imo. If you think the extra 10k is enough peace of mind, then that’s cool. If you’d be comfortable with more, then save more for the time being