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Comprehensive-Tea-69 t1_j6e172l wrote

Reply to comment by jws1300 in Pay down on house or keep in savings? by jws1300

Emergency fund is usually synonymous with job loss replacement fund. Anyone can lose his job, and you still have expenses that can’t be financed. Lots of factors can decrease the amount you need, like being a two income household, working in a public union job, not having kids, etc. So if all those factors are in place, your emergency fund can be closer to the 3 month amount of the recommended 3-6 months of expenses.

For someone with kids, private company, no union, spouse doesn’t work, etc the job loss fund should be more like 6 months of expenses.

Plus Expenses are not the same as income, 3 months of expenses should hopefully be substantially lower than 3 months of income.

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jws1300 OP t1_j6e2run wrote

Good point. I'm a single father so just one income. I want to have no debt asap so if I did lose my job I wouldnt be scurrying to get income.

Once the mortgage is paid off the only expenses would be the normal life expenses (water, food, electricity, etc).

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yes_its_him t1_j6etjhx wrote

> I want to have no debt asap so if I did lose my job I wouldnt be scurrying to get income.

Don't do that. If you lose your job, you want cash, not equity. You can fund the mortgage for many months even if you lose your job if you have the money liquid.

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