It’s the first Sunday of the month, so I’m paying bills and looking over balances over a cup of coffee. I’m now over 5 months removed from having been laid off, so this is the first time in a while I don’t feel extreme anxiety looking at my information and monies again.
But it jogged my memory. And I remember feeling at the time — when both my wife and I were no longer working — that whatever we had saved up to live off was suddenly not enough. I am relieved that it was not put to the test as we both work again, but it caused me to re-evaluate my finances yet again in short order.
In my mid-20's and hearing all kinds of “go-to” targets: 6 months of your income saved, six months of your average post-tax consumption saved, or even hearing 1-year’s salary saved... But we all come from different walks of life, and have different responsibilities and family situations. A “catch-all” rule won’t work. Not to mention, people with extenuating circumstances that hinder any kind of lofty financial goals.
Speaking for myself, I somehow don’t have a round number in mind. I think I would prefer to have 6-months worth of money that allows me to maintain a similar lifestyle (which in my case means pay bills and buy beer) should I unexpectedly lose my job or something like that — at minimum. More is better, but then it becomes, “oh, you could be making that money work FOR you elsewhere than sitting in the bank.” But I own an old home that needs things, so a little extra money on hand would make sense for us.
In short, adulting kind of sucks sometimes.