I have just under $10K saved right now, which, once I reach the $10,000 mark is anywhere from 5 months worth if I spend $2,000 a month, or 10 months worth if spending about $1,000 a month (which I’m closer to now). I’ve also set up accounts for every recurring savings goal (Christmas, birthdays, car taxes, car insurance, physicals, chiropractor) and don’t count any of that money saved so technically I’m beyond that.
While I plan to ‘finish’ this goal at $25,000 (so that way if I choose to spend $2,000 a month I’ll be covered and then some) I’ll be taking a break from this at $10,000 which will still be enough to tide me for a while as I focus on other goals like saving for a house, retirement and/or smaller immediate goals like my script option fund etc that are much smaller and easier to knock out. Nice to get some traction on this as I work towards financial stability and freedom while building assets!! 10 months ago
Lowers the overall amount needed to save considerably (by a factor of 12) and makes what you have saved worth that much.
Obviously focusing on bigger savings is more productive like rent, transportation and food
Slashed rent to $320 from $500 from $633 so my overall
Plus staying healthy and no claims has dropped my health insurance by $20 a month
Also weighing less and selling off crap I don’t need anymore makes gas last longer, moving cheaper and less worry about damage/loss (and the opportunity cost put into the items is somewhat recaptured)
So now I’m about at 6 months saved. At 8 I’ll feel pretty safe (which is about $10,000 saved) and of course the 1 year mark will be the goal since I was out of work for 16 months I don’t want to ever be unprepared again. Then I can really focus on investing and wealth building so I can become financially independent from the rat race to focus on producing, writing, education and spiritual growth. It’s about priorities though – hard in image obsessed LA.
Hey maybe buying a property is less difficult than I first imagined? If I can lose weight with focus there’s no reason I can’t hit those as well! 12 months ago
What I did is realize that focused attention on one goal is a lot easier than split focus on two – that is, I stopped contributing to my house fund and combined the funds from there into my emergency savings account/prudent reserve.
Not only will I knock out this goal faster, but the (paltry) interest I earn will be more per month. I know it’s not much but every little bit counts.
(And after all, I was out of work for 16 months and need to build up my reserves until I have at last 6 months expenses saved for an emergency, then I will begin saving for a house which is less of a priority for this stage in my life but a goal I want to achieve soon as well). 14 months ago
Every $250 is 1% done, so I’m 13% done… do the math & you’ll know where I am at! 22 months ago