Rainy day fund

[danaeris]

How much do you like to keep in your rainy day fund?

I thought 3 months living expenses might be good, which comes to a pessimistic 5K for me. Thoughts?

Comments

[bluedaisy.livejournal.com]

That's certainly what I try for, though my estimates are on the low side for those 3 months---3 months of rent and living cheaply are what I save, about $3K
(Now, that may change as I (1) become desperate and use some or (2) graduate and have more money because I have a job, so YMMV)

[benndragon.livejournal.com]

My father (financial advisor) told me that a rainy day fund should have three month's worth of living expenses. He also advised having said fund in its own account, seperate from any other savings (usually it's large enough that it won't cost fees).

[mactavish.livejournal.com]

Three months is good if possible.

[earthdog.livejournal.com]

I live dangerously, one month's rent is what is in my current rainy day fund. I save more when I am unsure about the world. I will admit that I am prone to making bad choices about money.

[auros]

I'm currently at about 1.5 months. I usually try for at least three, and I'd really like to save up a year's worth, so I could take six months off to travel and relax between jobs next time I change. I could use a break.

My current problem is that I have some interest-bearing debt, so I currently am diverting most of the money that would normally go to savings into paying off the debt. As long as I do stay employed (which seems likely for the immediate future), it's a good strategy over the long run, since it means I get to save more money in the future... Still, it's not a risk-free strategy.