I am working towards saving 6 months of expenses.. Every time we get to $1000 in our savings account I will transfer that $$ to a seperate mutual fund account that pays better interest & lets us write checks out of that account. Because the smallest check you can write is $500 it makes it a great location for the larger savings. I am considering putting anything over 3 months of expenses into CDs, but I don't want the $$ tied up too long if we end up needing it.

Goal is six months LIVING EXPENSES (not income) and that is calculated at what we would need at 0 income. We're past four months now and probably should be there before Christmas if everything goes as planned.

Our emergency fund goal is to have enough to kick Murphy out if he comes to call on a large scale! This means saving enough to cover our auto insurance deductible on each car, our max out of pocket for health insurance, our homeowner's deductible, and two months of basic budget expenses (mortgage, bills, gas, grocery, household items.) I don't think I'll feel financially free before I know I can cover ALL of these expenses should they arise. We have quite a row to hoe, as you can see!