Comments on: Emergency Funds For New Graduates

By: amanda

amanda — Sun, 03 Jan 2010 23:33:51 +0000

The rule I was given, was about 3 months of bills. This seemed like a good rule, until the past year when people were running through 18 months without work…

By: What I wish I knew about managing my finances before I started college | The Wisdom Journal

Fri, 04 Sep 2009 05:59:48 +0000

[...] up for life’s little surprises helps me sleep better at night. Whether you want to call it an emergency fund or money for a rainy day, the money reserve will help you financially deal with [...]

By: » Take Control of Your Financial Situation

» Take Control of Your Financial Situation — Wed, 13 May 2009 11:03:34 +0000

[...] may not be your top priority but when you graduate it becomes an important issue. The reason an emergency fund becomes an issue after graduation? Simple, this will most likely be your first step into the [...]

By: Studenomist

Studenomist — Fri, 06 Feb 2009 05:50:14 +0000

@Ken thank you for the kind words.

@Vik Dulat Treating every paycheck like it’s your last sounds like a great idea but the unfortunate part is that many people these days really don’t know if it is their last pay check.

@Frank $10k that’s a really solid emergency fund! That’s more money than most people have in their savings account or retirement account. Congratulations and I hope to see you around Studenomics.

By: Frank

Frank — Fri, 06 Feb 2009 02:01:12 +0000

I graduated 9 months ago and have an emergency fund of $10k… about 8 months expenses at my current spending rate. If I lost my job or something I could cut back and turn that into about 12 months.

I have that with no fear of myself being laid off… but you never know in this economy.

I also am rather risky in all of my investments. I just am not naive about what could happen and want to cover my bases.

By: Vik Dulat

Vik Dulat — Tue, 03 Feb 2009 21:02:45 +0000

Job security is key. This determines on how much you spend and save. You should treat each paycheck as if it is your last one. This forces you to save more money.

By: Fesitval of Frugality #163rd Edition | My Journey to Millions

Fesitval of Frugality #163rd Edition | My Journey to Millions — Tue, 03 Feb 2009 05:14:17 +0000

[...] presents Emergency Funds For New Graduates posted at Financial Independence in Your 20s | Studenomics. Studenomist is a 20-something blogger [...]

By: Ken

Ken — Sun, 01 Feb 2009 19:23:33 +0000

It’s great to see you hitting on this important topic for twentysomethings. I’m going to forward your site to a couple who needs to hear this.
Keep up the good work!

By: Studenomist

Studenomist — Sat, 31 Jan 2009 17:22:15 +0000

Thanks for the excellent feedback everyone!

@Stephanie PTY I am impressed with how you are realistic enough to realize the importance of being prepared for life after graduation. The cost of moving, buying furniture, and buying suits for a job interview could be very expensive and you are right that it is important to plan as far in advance as possible.

@Steve That’s true, how could we forget to ask about debt? I’m thinking of you have a high amount of debt then a small emergency fund would be appropriate while you work on paying down that debt.

By: Steve

Steve — Sat, 31 Jan 2009 02:36:13 +0000

One size definitely doesn’t fit all with regards to emergency funds. A lot of good parameters are listed above. You should also look at how much debt you have. You don’t want to not be able to make credit card payments, car payments or mortgage payments because you lost your job. Also, you should think about what your deductible is for different types of insurance. You want to be able to cover these deductibles.

Everybody defines emergency differently. How do you define emergency? Is it losing your job? Is it getting in a car accident? Is it a fire burning your house down? Is it an expensive medical procedure?