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What is a comfortable saving amount?

post #1 of 8
Thread Starter 
I hope this questions makes sense!
Dh and I have been on a very low income for quite some time now, but this month we are fortunate enough to have money left in our checking account. I was wondering how much is considered a comfortable amount to you all, after all bills and rent are paid? We only have one account, no savings, no credit cards.
post #2 of 8
Ideally, I'd love to have six months of living expenses saved up. Heck, I'd be happy with three months even.

Due to our situation right now, I am happy when we have an extra $100 or so after all bills are paid and food has been bought.
post #3 of 8
Three months of bare bones living expenses is a good goal to work towards, and if you meet that, add to it.
post #4 of 8
I agree with 3-6 months being optimal.
post #5 of 8
I'd say at least 6 months of bare minimum plus a little extra for unexpected stuff. DH recently lost his job of almost 8 years and I'd only had 3 months and we're already half through it with no other job in sight and unemployment doesn't cover everything we fall a few hundred short a month. Not sure what we'll do once the unemployment runs out. But when things look better again 6 months will be my bare minimum of expenses saved.
post #6 of 8
We have a short-term savings, mid-term savings, and retirement accounts (long-term). We started with the short-term savings by working up to a minimum balance of $500 in our joint checking account to avoid cash flow issues. Then, we built that to $1000 minimum and moved it to a joint savings account that is linked to the checking account as automatic overdraft protection.

Technically, we each had retirement accounts through our jobs before we met, but we have each had a handful of jobs since then and neither of us has a 401k anymore. We fully fund our Roth IRAs, though.

We worked on our mid-term savings much later and started with 0-3 months worth of our living expenses, then 3-6 months worth. We skimmed off the top whenever we needed to purchase something big in order to use cash versus credit whenever possible. At this point, we are close to 10 months worth of living expenses and are slowly working towards a year's worth.
post #7 of 8
The minimum I would be okay with is 1000- kind of thinking of the DR babystep one.
post #8 of 8
Back before this whole economy tanked on me I was ok with 6 mos of 'full' expenses. I know everyone says bare bones expenses but I prefer 'full' expenses. But now that I am Older, Wiser, and well... more experienced in being broke...*I* will be working toward 2 years of full living expenses in liquid funds. yes that seems like alot but since I had to find a new career and that takes about 2 years I dont ever want to find myself in the position we have been in for the past 18 mos. Yes I have been stubborn and I refuse to touch my retirement accounts but I never, ever want to do this again.

"Full" expenses include
Rent, Utilites, all insurance payments (auto, home, life, full medical), auto upkeep at current level, food, clothing, kids activies, travel expense account (incase of death, family need, etc), daycare fees, etc
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