The 3 month cushion.

[MilwaukeeJoe]

Today I heard on a talk show that you are supposed to have 3 months worth of salary in case you get laid off or a general emergency fund. We have a little put aside but nowhere close to 3 months.

Do you have an emergency fund?

 

[jason]

Yup, we have one. It will last more then three months if we spend it wisely. That is the key though. We would not be able to spend like we still had income coming in.

 

[benben]

I think that is a good idea if you can manage it. For some, just to be able to save up that much it would mean making some sacrifices in spending now to secure yourself later.

 

[Paul40]

Yes we have one built too but it's much more than 3 months. We could live off our cushion for almost 2 years. I think in this poor economy if you are going to be down and out it will take more than 3 months to get out.

 

[Jarred]

We have an emergency account, but it's not quite up to 3 months of my income yet. I'm hoping by the end of the year we'll be at the 3 month mark and then my intention is to keep adding to it because, as Paul said, with the economy the way it is you just can't be too careful.

 

[Sampson]

I wish we had that kind of a cushion set up, but it's only been recently that my wife and I have started to put something aside. Our good friend got laid off and he and his wife are struggling. It's a scary situation and really woke us up.

 

[lamant]

I am guessing that years ago before it got "this bad" the 3 months was okay, maybe now it should be changed over to a few years. Which year wise, we do not have that much of a cushion but it is worth the chance to build one up. The more insane the econ gets lately the more I worry.

 

[Jeff]

We do not have 3 months saved up out a loan 2 years. We try to put a little away with each check and then our taxes will go into the account.