Completed step one! My specific estimate of six months' expenses is $12,347.88.

Since I decided I don't need to replace the coin collection stolen from me a few months ago, I put $530 of the insurance reimbursement into the savings account. I need to find more ways to save money that's not "found" like this (though I guess technically it was "lost" first), but this is a good step.

Recently I increased the portion of my paycheck that automatically deposits to my savings by $30 per month. It's not a big number, but at least it's more than before!

This is excellent! I love this goal. After I saw it, I decided I needed a financial goal, so I'm opening a college fund for my 8-year-old. Saving is such an important thing and I've always sort of just floated, spending what I have. Totally irresponsible. I'm going for it.  Thanks for the inspiration! You're making great progress, too. Good for you!

Are you putting your $$ in an interest-earning account?  Even if it's 1% it helps.

Hi Jax! Yep, I'm keeping it in a savings account that earns interest. Sadly in this economy it's gotten lower than 1%, but at least it's something. And thank you for commenting--seeing a new comment here pushed me to transfer half of my annual Christmas money into the savings account. That's only $50, but like you say, every little bit helps!

This is a GREAT goal that everyone should have.  This will be a goal that I will take on as well.

Thanks! ^_^ Yes, I definitely think everyone could benefit from this. The more I read about lifetime finances and the more we see everyone affected by this economic crisis, the more I think an emergency fund is just invaluable. When I was laid off from a job in 2008 (I have a different job now) and I was unemployed for several months, knowing I had even a SMALL cushion that I had saved up at that time was one of the things that kept me sane. Having a really adequate cushion would make such a huge difference.

I like the idea of an auotmatic savings deposit as a way to make this goal easier to achieve. Good luck!

I just added this to my life list as I believe the ING gives me the ability to do this with my savings account there. Thanks for the inspiration!

Thank you sacrutcher! (And you're more than welcome!)

The automatic deposit is fantastic for me. I don't have to remember to do anything, and once I got used to the new spendable amount of my paycheck, I didn't miss the money because I never "saw" it. Until it was time to feel proud when I balanced my savings account. ^^

I just updated my goal and wondered how you are doing on this as well?

Thanks sacrutcher! It was cool to see your update; I like feeling solidarity that we're saving together. ^^ I just took on an extra freelance project so I'd have some "uncommitted" money I could mostly just stash in the savings account without feeling like I'd really lost something. But now I'm at the hard part--waiting for the check to come in.... @_@

Well, the check for my freelance project finally came in, and of course by the time it arrived I've got a bunch of car repairs I need to make, so I don't feel like I can just deposit all of it in savings, which is frustrating. But like I've done before on this same goal, I had a serious conversation reminding myself that some really is a lot better than none. So, I deposited 1/3 of it into savings today and I am leaving it there! It's still a nice chunk more than I would have been able to set aside without taking on the outside work. And I've done a couple of other side projects too in the meantime, so I'll keep on focusing on savings as each payment is made. It helps to have this goal in front of me and a target number to look at so I can negotiate with myself: after I decide on a number to put in savings I then ask myself "Can I tuck away another $100 of it? No? How about $50? How about $25?"

Another couple of steps made here!

1. I got a tax refund this year for the first time in (if I recall correctly) a decade. It was $21. I was completely excited just at not having to pour lots of money into payments, but then I looked at the IRS refund options and saw that they do direct deposit not just to checking accounts, but to savings accounts as well. For a moment my brain went, "$21 is such a tiny amount, what's the point of putting it in savings instead of checking?" And then my reason caught up with me and I was like, "$21 is such a tiny amount, what's the point of NOT putting it in savings?! They're letting you do it directly! Just do it!" So my emergency fund got a tiny little boost there, and I felt a boost from feeling like I made a good decision.

2. The check for the second part of my three side projects came in, and this time instead of grabbing just a little of it, I put ALL of it in savings like I'd originally planned. Took the plunge just now and it felt to transfer it over. In a way this was the easiest one to do, because it was the smallest, but it's nothing to sneeze at--all of this somewhat smaller project is still more than the 1/3 of that larger project that I put in!

So I'm moving slowly and steadily toward this goal for sure. I feel overworked with all these freelance projects, honestly, but a lot of those I would have taken on for other reasons anyway, so at least now I'm using them in service of another goal.

I just made another transfer to my savings account that included my prize from the 21-Day Challenge! It's cool to use the fruits of pursuing one goal toward another goal.

It's great to see regular progress on your goal and I enjoy reading your updates. Can't wait to hear how June treated you.

Love the support for this goal.  It's amazing what a difference a little bit makes. Congratulations once again.  It's great to read what you've done with your winnings from the challenge, FA.  Using it to achieve one of your life goals here is fantastic.  Looking forward to more updates.

 A very wise investment for sure!  How are you coming along with this goal?  

This is an amazing goal!  I love it.  It takes time to build that up.  I'll have to work on this one as well as I rebudget this year.  Beginning of the year is a great time to reevaulate everything. 

Something worth mentioning with regard to this goal FA, and I know you understand because your'e aware of what we've been up against this past six months or so... I can't imagine where we would have been had we not had our savings in place when hubby's diagnosis and subsequent hospital stay hit us.  Those emergency savings literally saved us and it very easily could have been one disaster after another had our contingency plan not been in place.  This is absolutely a vitally important goal. Life and disability insurance are too.  One thing we learned the hard way:  private insurance doesn't necessarily mean better insurance than what the bank will offer with regard to mortgage insurance.  Always read the fine print.  

Thanks Andrea and zinful. And Andrea, thank you for sharing that. It's awful what your family has had to go through, but your story is really important, because it's so easy for emergency savings to be this abstract idea. People think of it as a "rainy day" fund, and when we think about it like that, we might know intellectually that it's important, but a rainy day doesn't sound so bad, so it's not compelling. You just brought home the reality. Big emergencies really do happen, and that's what they look like. And that's why these funds can suddenly make all the difference in the world. I know I've maybe got good awareness because I've been laid off in the past and I know what it's like when your income suddenly dries up, but even I need a reminder like yours too, because I've never had a medical emergency and those are very different in terms of how much power we can have over our circumstances. So what you say is really important.

And for an update on this goal, I have only a little over $1000 left to go!

 Just a grand left... that is fantastic.  

That is fantastic!!!  Amazing, really.  Looking forward to your Success Story!!!

 Thanks for your nice comment on my goal today Foley artist.  I liek your savings plan!  I've managed to pay down allot of dept over the last year and continue to do so, but have yet to build up any great savings plan.  I think Andreas advis is great as you never know what might happen and you need it.  Keep up the goal!  I (unfortunatly) am still falling prey to temptation...Van Halen is coming to town and I HAVETO see that show!!  Thanks agian for your goal comment.  Heck, I might jsut put my winnings in a savings fund...just like you did last year!

Andrea and Zinful, thanks so much for the encouragement!

Erik, congratulations on paying down your debt! That's great. Temptation has gotten me a couple times along the way too. I think the automatic direct deposit definitely deserves a lot of the credit for that, since it doesn't feel as much like "spendable money" if it doesn't ever see my checking account.

Temptation - it's a tough one.  It's gotten me more often than I like to admit!!!  I'm this close to paying off credit cards (a goal I've had posted for quite a while on here) and should have it done Feb/Mar (when I get my tax return, the latest, but hopefully before then).  I like that you do a direct deposit to make it happen.  I have a couple of savings accounts that automatically pull from my checking on a set schedule for other things and it's made my life this past year a lot easier.  

 The direct deposit was used when I did used to save.  I banked enough to by my first VERY small home.  Sounds like you have that method figured out Foley Artist, sounds liek it iw working well.  Keep up the good work you have done so far!

Zin, thanks for your comment, and congratulations on being in the home stretch with your debt! I don't have separate accounts for separate things, but I've been thinking for a while that it would probably be a good idea to at least have a travel account so expenses like plane tickets don't hit so hard. What sorts of separate accounts do you have?

Erik, saving for your first home is wonderful! I bet it felt great to be able to take out fewer loans.

Quick update on this goal: similar to last year, I had to grab some money from savings to cover car insurance and related end-of-year expenses. But a check finally came in for a job I did a while back, so my goal is to be disciplined about using that check for my rent money and transferring the amount I took from savings back into savings via my regular paycheck. I also just got my $60 check from Aflac that they give you once a year for getting a regular medical checkup. For that one the claim is super-easy for your Aflac policy, but you have to actually remember to file the claim, which is the hard part for me. So now that I've done it, I want to consider that outside my "ordinary income" and put it in savings. Closer and closer...

Description of living expense categories

Website: www.shepleylaw.com/livingexpenses.nxg

Bankrate emergency fund worksheet

Website: www.bankrate.com/dls/news/financial_literacy/Jan07_emergency_fund_worksheet_a1.asp

Schedule of non-monthly family living expenses

Website: msuextension.org/publications/FamilyFinancialManagement/MT198910HR.pdf