Daughter said it was 48F in Berkeley this morning; she wore the plum sweater and it kept her nice and warm. I'm glad I gave the sweater to her because she needed it more than I (it was 64F here, this morning; our high was 75F while her high was 64F.)
After I came home from work, I did a load of laundry, did a load of dishes, emptied the kitchen trash can, and knitted another hat:
One of the things I talked about with daughter, today, was budgeting. We were discussing emergency funds and how much one should have in an emergency fund. When I first started budgeting, I had read that one should have at least $1,000 in an emergency fund. Then, I read that it should actually be at least one month's salary but single parents should have three months' worth of salary in an emergency fund, the presumption being, in a family with two wage earners, there was a higher possibility that if one is laid off, the other might still be employed and able to pay the bills, whereas in a single parent family, the single parent is the sole wage earner. Later, when the economic slowdown occurred and it was harder to find re-employment as quickly, the accepted wisdom was to have three to six months' salary in an emergency fund and up to one year's salary for single parents. I remember sitting down and going over my monthly budget to come up with a "bare bones" budget, in case I got laid off from my job! Fortunately, I didn't get laid off and I was able to continue to pay for extras and small luxuries such as daughter's dance classes and our eating out on occasion.
Today, I am grateful for:
- Being employed in a fairly secure job
- A steady salary
- Being able to live within my means
- Savings for emergencies and other planned expenses
- Being able to have these types of conversations with daughter.
Do you have an emergency fund? If not, is it something you are trying to build up? If you don't have an emergency fund, how would you handle an emergency? How would you pay for it? Would you put it on a credit card?