S/O: what is a good "cushion" for you?

[PilsnPinkysMom]

Great thread (& timely, for my family), Fiery!

DH works, I'm a full-time student, no kids, mortgage, car payment & crazy-stupid amount of student loan debt. No CC debt, thank goodness.

Currently
-10% of DH's income goes to 401k
-Tuitions-worth amount of cash in savings... but yes... it's for tuition & nothing else, except in case of dire emergency
-1 month of (barebones) expenses stashed away

Hopefully within the next 2 years
-10% to 401k
-5-6 months cushion in 'emergency fund'
-No more car loan
-Student loans & mortgage will be the only obligations

Our cushion sucks. We funnel about 2k into student loans each month and have fooled ourselves into thinking this is a 'good' thing. In some ways it is, but it would be better to pay the minimum amount and create a safety net... and THEN go back to paying as much as we can. If DH lost his job tomorrow we would be up $hit creek without a paddle.

 

[onedrop]

I'm really surprised at how many people are debt-free or close to it.

Zoe: I agree with you on this.^^

Though DH and I have some debt, we also have at least three months of emergency money available. We are working toward having six months of bills covered for "just in case" while at the same time paying down the debt. I also like to keep at least $1000 on hand for things that might come up along the way. We are far from being in a perfect financial situation, but we are working on it.

I dunno, it is a forum for people with lots of disposable income to an extent who can afford luxuries like diamonds. Probably attracts a certain type. And the people in lots of debt don't offer advice on financial buffers!

Good point DD! I was going to write something similar in my earlier post but couldn't find the right words.

 

[Rhea]

We have about 2-3 months of all bills right now in savings. We have no additional savings. I'd like to have closer to 6 months expenses plus money to save to buy a flat.

Neither of us have any additional debt and we don't have a mortage. We don't make very much and just save what we can. I make sure that we save a set amount each week, plus everytime I work overtime I put that in savings, and the difference between my 2009 and 2010 paycheques. So it's just bits and pieces here and there really.

 

[rosetta]

We are saving for a house, so we have a lot in the bank right now.

No other investments. We both have fairly good pensions as we work for the NHS.

After we pay for the house, we will have no cushion at all, like starting from scratch.

Yeah, I'm nervous about that.

I would like a 6 month cushion ideally.

Any investment advice would be appreciated!