As you know having a sizeable emergency fund in case of job loss is important to me. It wasn’t so long ago that I was pleasantly surprised to see that I was using the previous paycheque to fund my current fortnight. I have left the money alone as I’m really not sure how I managed to save it. While letting that magic growth happen, I’ve also been actively putting a bit of money into an emergency fund. Today I realized that the money in my emergency fund is the exact amount as one of my paycheques and I realized that my chequing account has a bit more than a paycheque in it.
In order to really allocate all this to my emergency fund. I transferred the amount that would be a full paycheque from my checking account into my higher interest emergency savings account.
This means that I’ve got one month of pay saved!
My aim is to have a six month buffer in place over time that will give ML and I the freedom to not be completely stressed if one of us loses our job. I feel comfortable slowly working to this buffer as if I was let go I would have a host of options availalbe to me.