When I whined about my $500+ car repair a few posts back, Living Almost Large left a comment, asking: "Don't you have any taxable investment savings? Even in stocks? Is it all in retirement account?"
No, I don't have any taxable investment savings. I don't have any savings at all, except for the ever-changing but never-quite-$1000 emergency fund that Dave Ramsey says we all should have.
While people like Jennifer at "Finding Financial Peace" are well on their way to accumulating three to six months of expenses, others of us are still struggling with Murphy-visitations every time we get near to our first $1000.
JD at "Get Rich Slowly" explores with his readers the issue of what happens after you use your emergency savings. Check out the comments to his post because that's where all the action is. Some readers have three to six months stored away; others are more like Grace.
And just why does Grace have no savings?
16% of my pre-tax income goes into my retirement accounts. When one comes late to the retirement party, cash and time are of the essence. But then there are debts that need to be paid off, and daily life to be lived. When all of those are factored in, not much is left for non-retirement savings.
Right now, I am determined to pay off the car repairs prior to incurring any interest charges (I put the expense onto my dormant Firestone account). I may succeed in doing that during August, but it will mean that my emergency savings must wait another few months before it gets back up to $1000. And that is only if Murphy stays the heck away from my budget!