Hot take: My whole view on emergency funds changed after a weekend in Cleveland

I was there for a wedding last fall, and my car's transmission went out on the highway. The repair was $2,800. I had to put it on a credit card because my 'rainy day' fund was only $1,000. Now I argue you need at least three months of bills saved, but my friend says that much cash sitting around is a waste. What's the real number people should aim for?

3 comments

3 Comments

mary_west7d ago

My emergency fund is just a pizza budget.

the_jana7d ago

Honestly used to be the same way, lol. A flat tire or a vet bill would just wreck me. Then my car's transmission went out last year and the quote was more than I made in two months. That panic is no joke. Had to put it on a card with crazy interest. Now even saving a little each check feels better than hoping nothing breaks.

pat_jenkins7d ago

Yeah, that Cleveland story is exactly why I bumped mine up. I read this thing from a financial guy who said the old three to six months rule is kind of outdated now with how crazy costs are. He said to start with one month's bare bones bills, then aim for three months of full living costs, including stuff like pet food or your phone bill. That $1,000 just doesn't cut it for a real car repair or a job loss anymore.