Reached My Goal of Saving 3 Months Living Expenses!

This is why I LOVE automatic saving/payroll deduction.

I set a goal of saving three months of living expenses a few months back and checked in periodically to see how I was doing.

I added up the money in my emergency fund and regular savings to find that I saved a total of $8,989 -- $300 over the goal!

Phew!
(You may remember, from a previous post that I estimated 3-month LE was about $9,200, which was close until I made some cost-cutting adjustments, which brought me to the new total above).

I felt relieved. First, it was quite the painless journey to this goal. I just set up a payroll deduction so I didn't have to think about saving the money. And with that money not ever appearing in my checking account, there was no way I would spend it. Second, it just boosted my confidence that I actually can save 6 months living expenses. The first time I thought about doing that, I freaked out because the total was so big and it seemed like I'd never reach it -- or at least not reach it forever. It won't take forever!

Right now, half the e-fund is in a 6-month CD earning 4%. I have to figure out how to best maximize what this money will earn for me while it's waiting for when I need it.

The picture isn't all golden though. I will still need some of that money to complete the rest of my dental work. My guy and I are also planning to move, which would mean higher rent and possibly utilities. So, that living expenses goal will be somewhat of a moving target in the near future.
But I'm not worried -- I did it this time. I'll just do it again!

DH

Comments

[Asset Gatherer]

You are such an inspiration! It seems easier to save when your debt is gone, which is reason #186 to get out of debt. I'm especially intrigued by the pf bloggers who have added their mortgages to their debt snowball.

While you're considering moving into a larger space, have you considered buying a place instead of increasing your monthly rental payment? Mortgage rates are low (they dropped even lower the Wednesday before Thanksgiving), and sellers are accepting offers in order to get their place sold. Good deal if you don't have a property to sell first! Just wondering if that discussion has come up with you and your guy.

[Sistah Ant]

This is wonderful! Set it and forget it really does work with savings - I bet you feel real good!

[Spendthfit]

Congrats! I hope to emulate you by incresing my Emergency fund to encompass six months worth of expenses.I think I'll go to HR and redirect some of my paycheck now.