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Wisdom_In_Wonder t1_j2dm2h2 wrote

How many months’ expenses does that $10k EF represent?

Do you have additional savings in the form of Sinking Funds (for home / vehicle maintenance, vehicle replacement, clothing, child activities, etc)? If so, what do those funds amount to?

Are you saving for retirement? How much is currently there & what are your monthly contributions?

If you get the EF up to 6mo expenses and you have well-funded sinking funds and retirement is on track… you could possibly consider a different house. With interest rates double what you currently have, I doubt it would be any bigger unless you go much, much further out from the city - at which point you might struggle to find a small enough lot to keep it affordable. Perhaps as you save they will creep down a bit more, but I wouldn’t anticipate seeing sub-4% rates again for many many years. Low housing expenses offer your family a ton of security & flexibility, particularly while raising several children.

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Tenmaru45 OP t1_j2dp5f4 wrote

Thanks for these thoughts. My emergency fund is about 5 months worth of expenses, maybe 5.5. We're saving about $500 a month, and $12k is where I'd hit 6 months without being on rice and beans, but still cutting back.

That said, at the time there isn't another separate sinking fund which also worries me as the EF is sort of a both/and deal.

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Wisdom_In_Wonder t1_j2dy23a wrote

You are in a stable financial position - no new house is worth risking that. I definitely would not consider moving until the EF is at $12k and you have filled sinking funds beyond that and you are saving 15% monthly to retirement.

Home Maintenance: 1-2% of home value/year

Vehicle Maintenance: $75/vehicle/month

Vehicle Replacement: Estimated monthly payment

Personal Care: Annual clothing + haircuts/12

Holidays/Birthdays/Gifts: As you see fit

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