CASHCash Emergency Fund:
I live in an earthquake area. I think it's important to have cash (and water!) on hand just in case...
SAVINGS LINKED TO CHECKINGSlush Fund:
The goal is to have one full month's worth of expenses. I know many people set aside some money every month for upcoming and irregular expenses such as car insurance. None of my irregular expenses are more than a typical months worth of expenses. In addition, I like to have a full month of savings easily accessible to my checking account such that I can pay the bills if something happens to my paycheck (there were 5 months straight that my university messed up my paycheck...I may have become paranoid) so I aim to have a months worth of salary in my slush fund.
HIGH INTEREST (and separate!) SAVINGSI've been saying that I'm shooting for a 12 month emergency fund but I've since decided that I'm really striving for two different goals. I think my comfort level is such that a 6 month emergency fund is enough. However, since I know that I will be having a big life change in the next couple of years (graduation - hopefully) I want an additional 6 months for security. I think the difference is that I have no problem spending this additional 6 months worth of money after I graduate in order to find a job that will fulfill me, and hopefully provide a small break to recuperate when I finally finish my degree. Thus I've now separated these in my mind to be a "6 Month Emergency Fund" and a "6 Month Play Fund." At the moment the following goals are being kept in one account, which I deposit money into on every paycheck.
6 Month Emergency Fund:
My living expenses just dropped considerably, which resulted in an exciting realization that I now have 6 months in my high interest savings account! Yay!
I don't have a retirement account yet. However, since my move has freed up a lot more of my cash I've been thinking about starting one this year. When I've saved up enough money and done the research to start a retirement account, this will separate from the high interest savings. For now, this is the best and most out-of-the-way place to store it. They have just become separate items in my spreadsheet.
6 Month Play Fund:
I want to fill this by the time I graduate.
Has anyone else found that as their financial goals are constantly shifting?