We hit our bank accounts really hard this year, with the van and house purchases, and all the miscellany in between. Plenty of miscellany.
In the interest of being transparent, we did use a small portion of our emergency savings for the house. Small. Small enough that we should be able to restore it before our first mortgage payment is due. But still! I have said before that buying a house is not an emergency, so I wanted to note that I’m being a little bit of a hypocrite here.
Anyway, I don’t regret using the funds that we did in the way that we did. We do still have enough cash on hand to get us through a big crisis such as a job layoff. Still, since we are primarily a one-income family with now a huge debt, we want to build our cash reserves up a bit.
I think we’ll take it a little beyond 6 months of expenses this time, and then we’ll keep on funding our Roth IRAs for retirement beyond that. Should a huge crisis hit, we have our cash reserves and then the IRAs as a backup if it comes down to it.
One of the nice side benefits of having a pressing savings goal is it is preventing us from going out and spending money on things that we don’t need right now.
For example, both of our laptops appear to be on their last legs. It has been our experience that when our computers die, they give us a few warnings and then boom, drop dead. I’m working on backing up files that I’ll want to transfer and I’m looking into deals on getting a new or refurbished desktop. We’ll get one desktop computer to replace our two laptops and try and sell our laptops on eBay for parts, as we’ve had some success in the past with that. We don’t have a need to be mobile in our typing right now, so the desktop could work well for us.
I suppose I could buy a computer sooner, but that wouldn’t be the most prudent thing. For one thing, it’s not a critical purchase. For another, it’s money we could be putting into savings right now.
Spending money on a non-emergency when we don’t have our complete e-fund is kind of like borrowing from our emergency fund to buy a computer. I don’t think we need to do that.
I’ll update our progress bar in my sidebar to reflect our current goal. Go, pink piggy, go!