No. of Recommendations: 2
I don't know that I'd worry too much about the $600 E-fund. If you're adding $200/mo, it will grow back up over time. If it never seems to grow, maybe a separate budget category is missing or underfunded?

Regardless, you have in effect a $2000 e-fund every month that you're paying down debt with. If it were me, I'd keep concentrating on the debt and slowly adding to e-fund just like you are. So an unexpected $1500 expense hits your $600 fund? The snowball gets $900 less that month. So what? At least you already applied that $900 to debt reduction in previous months instead of putting it in e-fund. In the grand scheme of things you'd still be ahead, right?

This assumes your income is stable and unlikely to suddenly go away - not at risk for downsizing/layoff/have LTD insurance, etc.

There's a lot of "what-ifs" that make a big e-fund nice, but that debt monster is real - its not a "what if" - so if you're comfortable with a smaller e-fund for now so you have more ammo to battle the monster, that's not a bad decision.
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement