Do you keep a cash reserve?

[EsmeraldaX]

Originally posted by caitycaity
my parents do the cash in envelopes thing too, galahad.

dh and i just paid off a rather significant amount of debt, so we are working on saving up a cash reserve (in one of our savings accounts right now). our goal is 6 month's salary. right now we only have a little bit (like less than a month) because we just paid off all that debt. by the end of the year, though, we'll have it almost all saved.

i never thought about keeping large cash reserves around the apartment. it makes me feel uneasy. we do have about $100 in cash between myself and dh at any one point though.

I'm the same way. I don't trust our neighbors and I would not feel comfortable keeping large amounts of cash in our apartment, even in a safe.

I don't like carrying cash on me, as rule. I know too many people who have been robbed/mugged.

 

[caitycaity]

Originally posted by EsmeraldaX
I'm the same way. I don't trust our neighbors and I would not feel comfortable keeping large amounts of cash in our apartment, even in a safe.

I don't like carrying cash on me, as rule. I know too many people who have been robbed/mugged.

i've had my wallet stolen twice in 5 years. i try not to keep too much cash in there for that reason.

 

[EsmeraldaX]

Originally posted by caitycaity


i've had my wallet stolen twice in 5 years. i try not to keep too much cash in there for that reason.

Not to hijack the thread but last month, my best friends DH was mugged after he tried to give a few dollars to a homeless guy.
He lost over $400 in cash he had just withdrawn from an ATM and he was walking towards his train station.

As if that was not bad enough, a few months ago, her DH also gave about $1 and some spare change to a homeless guy he passed on his way home from work late at night and all of a sudden, a bunch of undercover cops jumped on him because they thought he was buying drugs off the guy!

Anyway, I rarely carry cash.

 

[sweet angel]

Cash? What's cash? I think I have some jingly stuff in my wallet...other than that, I just use my debit card. I usually have less than $20 on me.

 

[danacara]

I keep three months in a no-fee checking account, another six months in mutual funds. These days though, New York life, I am spending just about what I'm making. Brutal habit. Ha.

 

[EsmeraldaX]

Originally posted by sweet angel
Cash? What's cash? I think I have some jingly stuff in my wallet...other than that, I just use my debit card. I usually have less than $20 on me.

That's how I pay for everything too.

 

[Crankyshank]

Unos is super cheap? The one near me must have special pricing because it's anything but cheap.

To answer the OP, right now we've had too many unexpected expenses that have popped up over the past 2yrs. Saving up for the house was the last time we had any savings. I had 2 mos of living expenses in the bank but we had to tap into it because of unplanned dental expenses and now we need a garage roof.

I'm also trying to pay down our substantial debt we've accrued. It'll be a year or 2 before I can really start saving some rainy day money.

 

[canwegosoon]

I think the rule of thumb depends on job security/ job fluidity (how quick can you get a new job for at least your old pay). In my DH case he would need 7 months, I would need 2 months. We exhausted our emergency svgs for me to finish another degree. But when I go back to work in 2 weeks, the emergency funds are going into an ING account at 2.2% intrest. It will take us 6 months to get back to a 3 month fund, and a year to get the 7 months that we want to have. Good luck.

 

[Crankyshank]

It's also extremely difficult for those of us who are just starting out and who haven't had any sort of salary increase in years to stash money away.
Unfortunately, it's those very people who really need that emergency stash I know this from experience.

 

[Kitty 34]

We have a pretty good savings but who knows when son goes off to college. Tuition will probably eat that up in a heart beat!!

 

[septbride2002]

I'm sure I'll get flamed for this, but I'd really rather enjoy my life now, because if there ever was an emergency/disaster, who knows, I might not make it out of it alive and I'd rather know that I lived my life living, rather than putting cash away for what if's.

Esmerelda this is our way of thinking too so you won't give flamed by me. It is also nice because DH and I have pretty good jobs and do feel quite secure in them. DH is a little bit more secure then mine is though.

My plan in the next year or so is to get 3 months worth of our income into a Money Market Account just to say we have it - but otherwise we will just continue to put 10% of our annual income into a 401K account.

I agree you have to set priorities. People are always yelling at DH and myself that we don't have cell phones - our thinking we don't really need one and it saves us at least $35 a month - that's a meal at Disney!

~Amanda

 

[mudnuri]

We have 6 months of DHs salary in a savings account, 12 months of mine, works out to being 6 months of living expenses though I guess...

We also have money in staggard CD's, none end near one another.

We keep cash at home, for emergencies, or just spur of the moment stuff

We hardly ever use credit cards...DH uses his for diesel only- as it's a business expense, and its a company card...I try my darndest NOT to, and we use cash for everything. I only write out checks for bills, and we dont have an ATM card

Brandy

 

[*Flower*]

We have about 8 month's salary in liquid savings...

DH doesn't even think about it- but it took me a while to dig ourselves out of massive debt. So although we do travel for pleasure, I make sure that I find the best deals around. And what he doesn't know won't hurt him.

 

[pirateofthecarolinas]

We have 6 months salary saved away.

My grandmother used to put her money in a sock and kept it in her bra!

Lori

 

[faithinkarma]

Four months worth in a savings account. It wasn't that long ago that I had nothing. Funny how once you start, it never seems like enough.

 

[Pugdog007]

Total from checking & savings would be about 5 months of my salary. Unfortunately I'm expecting to have to liquidate all of it when DD16 goes to college in 2 years. Then I'll have to start over

Thankfully though, I don't have any bills only my mortgage payment. I just paid off my car a few months back, have paid off all cc and put 20% down on my new house to avoid paying PMI.

I also love to travel. Going to Vegas the first week of Oct and NYC the 3rd week. DD16 will not want to go on vacations with me much longer... I'm trying to enjoy it while I can.

I don't keep money around the house nor do I keep it "on me." I use my debit and AMEX mostly.

I need to save more. Thanks for reminding me.

 

[syncer55]

Its good have have a little cash reserve at home. You never know when the computer systmes will go crazy or your bank decides lose its records.

 

[katerkat]

We have 4 months in mutual funds and 2 months in checking. But DH's job is really solid (military, ten year contract!) so we don't really worry about having much more right now. All our other savings are earmarked for a house, the baby, vacations, etc.

I also don't keep cash around. Everything is put on the credit card (which gives us points for my next car!), which is paid off every month. I usually just have a twenty just in case in my purse.

 

[diznee25]

With me starting college and my husband still paying off old debt he accumilated before we married, we won't have a savings account for a few more years.

Right now I do have over $300 in savings, but my car needs repairs totaling over $600! So my savings will be bare again.
After my car is fixed, then I start saving for school.

Does this even happen to anyone else? You try and start a savings account, but an emergancy always comes up? Like car repairs?

Our goal is to have 6 months salary in savings account by the time we start a family. By then we'll have little debt, and my student loans should be paid down quite a bit.

Diznee25