Tuesday, April 11, 2017

What do you consider an appropriate emergency fund?

Hi Everyone,

If you had no debt, no one taking money from you every month, what would you consider as an appropriately sized emergency fund?

This is exactly the situation that my wife and I are in.  We have just recently paid off our house, we have no car payments, no student loans and no credit card debt.  If we were to run a lean month, I firmly believe we could be at the $2,000 level for spending.  I completely understand that we could trim some fat but here is what our monthly expenditures look like:

Real Estate Taxes - $215
Homeowners Insurance - $75 - I should really shop around for this
Car Insurance (two cars) - $95 - And this.
Cell Phones - $100 - And this.
Gas & Electric - $120
Cable & Internet - $120 - We should definitely get rid of this! Or at least just have internet!
Water & Sewer - $30

Total for all *mandatory bills:  $755 per month