Monday, February 23, 2009

Revised 2009 Emergency Fund Goal

I completed my taxes over the weekend and when I receive my tax refund, I will transfer part of the refund money into my emergency fund bringing it to approximately $3,000. Since my goal for 2009 was originally $3,000 in my emergency fund, I will raise my goal to $5,000 for 2009, which is a little more than two months of living expenses. Once I have about three months (about $7,500) of living expenses, I can focus more energy on other savings goals like my car fund and a trip out of the United States in 2010 to an undetermined location (but contemplating London or Spain). I wanted a car so badly in 2008 but I now realize that I'm lucky that I have a lifestyle where a car is a want and not a need, so it can wait until I have more of a savings cushion.

3 comments:

YBP said...

Go you!!! you are doing great! A car is a major headache. How would you pay for it? I wouldn't recommend taking out a loan. I did and I can't wait to pay it off ( I hope by June) it is such a budget buster.

Small Budget, Big Style Chick said...

@ YBP - I would have to get a car loan, which I can't bring myself to do, so no car for me until I pay off my credit card debt and build up a car fund. I feel like I'm standing still on my financial goals, but eventually I'll see progress...

fdiary said...

Since you said you don't need a car where you live, I would not add any new debt right now. I would just continue to do public transportation until the economic storm blows over. We are in for some rough waters this year and maybe next year as well.