This past March I realized that I needed to start an emergency savings fund. I had spent $2,000 on a trip to Jamaica in January, which dropped my savings account to about ten bucks. I realized that in the event of an emergency (like the possibility of an impending strike, for example) I would have to use credit to get by. Not ideal.
I started with saving $100 in March. It’s the end of June now, and I have $1,712.50 saved. I had an unexpected boost this month when my dad and step mom gave me $500.
My goal is to be at $5,000 by the end of 2011. Based on my current projections, I’ll be at $4400 in December, so I’ll have to find some extra money. I’m planning on using some of the $12,000 (gross) retroactive pay I should be receiving in September to top up the account. If for some reason this falls through, I can use some of the money I receive at Christmas to reach my goal.
I also decided not to use my emergency fund to buy a Mac. I’ll wait for the retro pay to make this purchase.
Overall I’m pleased with my progress. I overspent a bit this month so I’ll only be able to contribute $200 to the fund in July instead of my regular $400, but I plan to reign in the spending and focus on my$5K goal.