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AustinLostIn t1_j6dmzu0 wrote

First, I'd like to know why you don't need emergency money? I mean, technically you don't need it until you need it. But why take the risk of not having it?

Anyway, just keep paying more on principal. You have a healthy amount in saving should something financially catastrophic happen to you.

Based off the info you have provided, I'd say you're in an ideal situation already.

Edit: stop contributing to your current savings and put that extra money toward principal.

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jws1300 OP t1_j6dyasl wrote

I guess I'd have to see examples of "emergencies". I have insurance for my home and everything in it, same for vehicles, same for health. With an 820 credit score, what can you not get with 0% financing in an "emergency"? I don't condone financing things but in an emergency I don't see a reason not to.

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Comprehensive-Tea-69 t1_j6e172l wrote

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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