I world say it’s getting to 3-months first, then paying down debt with high-interest rates, then trying for 6-months of expenses. Could easily take a decade, but the idea is that once you have that 6-months saved, it’s less likely that you’ll re-enter into high-interest debt in the first place.
It’s a however long it takes goal. I’m hoping to have it done in 2, although 3 and change is more realistic.
Unfortunately, if you can’t afford to live with financial security, you can’t afford to live. I haven’t had an entertainment budget in over a year, and food has basically been what’s on sale at the grocery store and maybe a gyro every month.
You can’t accomplish it in a year.
Most people can’t afford it in a year.
People who inherited a sizeable amount of money or are in the top 10% of earners are able to do so.
Yeah this is a 5+ year goal right?
I world say it’s getting to 3-months first, then paying down debt with high-interest rates, then trying for 6-months of expenses. Could easily take a decade, but the idea is that once you have that 6-months saved, it’s less likely that you’ll re-enter into high-interest debt in the first place.
Saving 3 months in an emergency fund while accruing high interest debt seems crazy to me.
Most people, especially those not very knowledgeable about personal finance, really should follow the Dave Ramsey baby steps.
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How long is a piece of string?
Depends on how much you earn, what are your expenses, and how much you have saved already.
It’s a however long it takes goal. I’m hoping to have it done in 2, although 3 and change is more realistic.
Unfortunately, if you can’t afford to live with financial security, you can’t afford to live. I haven’t had an entertainment budget in over a year, and food has basically been what’s on sale at the grocery store and maybe a gyro every month.
I wish you the best of luck. It isn’t easy. Getting out of debt and having a fully funded emergency fund is a great feeling.
You don’t have to. Start early, save aggressively, get it done before you worry about upgrading your lifestyle.