I'm behind in saving for my EF.

[fruitbowlk]

I'm behind in saving for my EF. I have set a goal I will not meet by the end of this year but shortly after. So my question is Should instead of having a car fund, house fund. etc be putting all my savings to my EF until it is fully funded and then move on from there? I will not need a car any time soon. If I save for the next two years I will have my downpayment for my house. I can do vacations with my paycheck. I will be losing my job in 10 months. So I want to be completly prepared.

[EconoMutt]

I made saving toward my EF a priority over my car fund.

[littleroc02us]

Since your losing a job in 10 months the only thing you should be doing is piling up tons of cash in an EF. Also, concentrate on your next job so it doesn't end right there. I've been there twice in my career.

[cypher1]

Since your losing a job in 10 months the only thing you should be doing is piling up tons of cash in an EF. Also, concentrate on your next job so it doesn't end right there. I've been there twice in my career.

Exactly! An EF would be a necessity. At least you know 10 months ahead of your (potential) job loss, and gives you more time to work on a game plan. I may be in a similar situation within the next 6-18 months, and decided to get another renter in my house just to prepare for the inevitable.

[disneysteve]

So my question is Should instead of having a car fund, house fund. etc be putting all my savings to my EF until it is fully funded and then move on from there? I will not need a car any time soon. If I save for the next two years I will have my downpayment for my house. I can do vacations with my paycheck. I will be losing my job in 10 months. So I want to be completly prepared.

EF comes first, before any other savings goals.

And vacations are luxuries. Needs come before wants. Knowing that your income will stop in 10 months, I'd be putting the wants on the back burner and piling up as much cash as I could between now and then.

[jpg7n16]

See all the advice above.

And also think about how stressed you sound. That's the problem with spreading yourself too thin.

How much happier would you be, if you woke up tomorrow and the EF was funded? You could finally let your mind check it off on your mental checklist! Right now, you're plauging yourself with 18 different unfinished items.

So yes, focus on the EF cause it should be a necessity, but also cause it will be good for your stress level.


DR created those baby steps with that idea in mind; That focusing on accompishing a single goal one at a time is more psychologically rewarding than several goals all at once. You should even ease up on BS-4 (lower to employer match) and start transferring money from other savings into the EF until it's where you want it to be (whether that's 4 months, or 6 months). Once it's good, bump your retirement back up, and start working on one new savings project.

Well technically, just keep piling up money into the EF for 10 months, then when you find new work, start over again - one step at a time.