Savings is something that I have always been acutely aware of. I am just not comfortable without a safety net to fall back into! I very much agree with the experts that you should have at least 6 months worth of income saved up. That way if something happens, you arent completely up shit creek without a paddle.
Of course there is also the mantra 'you have to have money to make money'. I dont necessarily agree with it 100%. You can make money without having any to start. Afterall, everyone has to start somewhere! But having a bit of money can definitely help you make money faster.
One of the things I do with the money that Jim and I have in savings is open CD's. The CD rates almost always are higher than regular savings rates. Higher interest rates = more money in my pocket!
Unfortunately, one of the downsides to the economy being bad, this isnt true at the moment. With ING, you can get 1.5% with savings or a CD! That is TERRIBLE! It wasnt long ago that I was getting CD's at 5%. Now that I have hit one of my monetary goals on my 101 in 1001 list, Im pretty frustrated that our money wont be earning much for us!
We havent gotten to the 6 month mark yet. But we are definitely getting there. $10,000 is a good place to start. We have been there before, but had to use some of it to replace the windows. Hopefully nothing like that will come up this time. I really like knowing that money is there.
Just one step closer to being ready, financially, for a baby!
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