How much is enough to feel ok?
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| Wed, 04-19-2006 - 9:25am |
I used to be barely getting by - boucing checks because I needed food or gas, having $30 left for 10 days and no e fund, etc. Now I usually have $150 in my checking on payday as opposed to -90 due to NSF fees and I am working the e fund back up. The crazy thing is I still usually feel a little worried even though rationally I know I have enough for everything I need until the next payday. I am still behind on some bills (utilities from old apartment, student loan) but slowly getting there. The crazy thing is, now I usually have about $200 for the one week before payday mark and I get worried - is that enough? what if I need someting? I carefully budget my food each day, etc., and although I only have $50 in my e fund, I will work that back up. After doing my budget for the next payday (I get paid every other Friday) I find myself thinking "is $500 enough for two weeks?" when $100 for two used to have to be. And I am not shopping and overspending (I don't have any credit cards anymore anyway) I usually end up with extra at the end of two weeks and pay another bill but I just still feel scared. What is a normal safety net? I used to feel this way when I had NOTHING and was floating checks. Maybe because I finally see a light at the end of the tunnel and I don't want to fail?
Thanks for the input.
Lauren


I exactly know the feeling! As my savings account balances go up and my debt balances go down, I find I freak out with a much larger cushion than previously. Where four years ago, credit available on a credit card of a couple hundred dollars was enough to make me feel secure, now I freak out if my checking balance dips below about $600. Three years ago, I was proud if I didn't *add* to my debt one month--now I freak out if I don't pay more than $900 toward debt in a month.
The good part is, my freaking out becomes less intense, because I can remind myself and reason myself out of it--wheras before, if there was no money and no available credit, there was no way out of it. It just sucked.
The bad part is, when I start relaxing about it, I tend to start overspending and reducing that cushion.
So I think a bit of freaking out is a good thing. :)
Don't worry. As your situation gradually improves and you see progress, you'll gradually start to feel better about yourself and safer in your situation.
Hugs,
Heather
I'm not sure I have an exact dollar amount that you could use as a safety net. This might be one of those things that you need to determine based on your needs, for example, do you have a car? Does it have a protection plan on it still or is it an older model? For an older model, you may want to put a few hundred into a savings account to cover a brake repair or a tow charge if needed. Just make a list when you've got some time to relax and think over your expenses. Just looking at your bank statements might help to remember what you have had to spend your money on the past few months. Good Luck with this.
I don't think you're alone, at all, in feeling uncertain about what to have as your 'buffer' in your accounts each month. I can remember squeaking by with only $5.00 in my account, and I was amazed that I never got a NSF during those times. Now, I'm able to keep a buffer of around $200 each month, and I still get concerned at times that it's just not enough. I'm still working at finding my comfort level. :-D
Pat :-D
Lauren, if you are feeling uncomfortable still, keep adding to that E-fund!!!!
Well, I totally understand that feeling, I still feel that way at times. For awhile, I actually felt more anxious about money as we started to get our debt under control than when it was really out of control. I think I was afraid of moving backwards. There are a few things that help me.
I have a small secret stash of cash, about $100. If we really got low on funds or there was a problem, I can always buy milk and gas. My DH doesn't even know about this, and truly it helps me feel more in control. I also fiqure if there ever was an emergency ( think Katrina, 9-11, I will have some cash at least to go from.
We have an overdraft line of credit on our main account. My Dh income can be very sporadic and I used to get very stressed if checks didn't clear in time, so we applied for and got this. I like ours, there is no charge if not in overdraft, and while the interest rate in quite high (18%) it is still cheaper than overdraft fees if things don't clear in time. We have had this for 5 years, and it has only been used once, but it makes me feel much less stressed to know that it is there.
I have a EF of $1000, and that is very comforting. I would like to have full freedom accounts, however, we are not there yet......
I also did a couple of practise weeks, How little can you spend?? and I find it reassuring to know what my bare minimum costs are to get through a week.
Hope you find a number that makes sense to you. Let us know how you do
Thanks everyone
Yes, I feel more out of control now that I am in control! Its crazy and I didn't expect it. I went to London with $200 to my name for 4 days and no credit cards for gooddness sake and I made it. I moved from the east coast to Colorado with hardly any money and ate Ramen noodles forever and made it. You would think I would get a grip now that I have more income.
I still owe some past dues, but they are getting there. I think its that I see that this is it - my chance to be done with debt, NSF fees, everything. Great suggestions! My fico is too low to get an overdraft line of credit, but I can transfer funds between my savings (when I have a decent one) so thats good. I love the idea of the cash stash and I will start this. And to have food in the freezer. The closer I get to Debt Free Step One (no debt except student loans and truck loan) I get more anxious. Step One will be donen in 9 months if all goes according to plan...but we'll see!!!