[SuzieQ]

It used to be recommended to have 3 months living expenses in an emergency fund. Now I'm hearing anywhere from 6 months to a year, depending on who the expert is. How big is your emergency fund?

[ditzyme]

We have a few thousand in savings but have had to dip into it as fuel prices have risen. I try to put back what we spend during the Summer, when we don't use the heating, and like to keep it at a minimum level of 6 months at least.

[craftykelly]

We are working our way towards six months, but it has been difficult. As soon as you get ahead, something comes along to push you back.

[wreckedmess]

We setup a savings as well and we each have a dedicated credit card (as bad as it sounds) that we will charge something mid-sized each month and pay it off (to keep it active). We would be set for about 6 months if we had to push it.

[MaryBeth]

While I won't say precisely how much our emergency fund is, we've set aside enough to take us through several years of emergencies. This day and time, I don't know how people sleep if they have only a few months' income set aside. The funds do add up quickly if you start saving early, surprisingly.

[jason]

I think we can make it six months or more, but some cutbacks would need to be made. The major bills like mortgage and electric bills could be made.

[SuzieQ]

Originally Posted by MaryBeth

While I won't say precisely how much our emergency fund is, we've set aside enough to take us through several years of emergencies. This day and time, I don't know how people sleep if they have only a few months' income set aside. The funds do add up quickly if you start saving early, surprisingly.

If you have several years worth, you should be investing anything more than a year so it will grow faster. Emergency funds are just for the short term, to get you through the emergency.

[MaryBeth]

Oh, it's invested properly, SuzieQ. I won't go into it on a public forum, but there are many long-term investments that pay very well that can be liquidated within the next day or so.

[Izzie]

We might be able to make it for a month and that would be pushing it. Unfortunately, everything but our mortgage seems to be going up in price while our income has stayed the same. My electric bill has doubled from this time last year, and we are using less electricity!

[SuzieQ]

Originally Posted by MaryBeth

Oh, it's invested properly, SuzieQ. I won't go into it on a public forum, but there are many long-term investments that pay very well that can be liquidated within the next day or so.

Oh, I see. Well, good for you then! I thought you meant it was just sitting in a regular savings account. I've seen a lot of people do that. I would truly love to hear of what type of investment vehicles you found that pay a decent return yet can be liquidated so quickly though.