Happy almost Thanksgiving, Penny Hoarders! As we prepare to give thanks, l want to know: What's your biggest money win so far in 2021?
I've been a bit down lately because I wanted to become a homeowner in 2021. But sky-high prices here in St. Petersburg, FL have me sitting on the fence, especially with so many properties going well above asking price. But instead of dwelling on that, I'll focus on the money win I'm most proud of: For the first time in my life, I have a six-month emergency fund!
For many years, I've hovered around a three-month emergency fund, which is typically the bare minimum. When I became single a little over three years ago, my emergency fund dropped to well below that level after I moved and readjusted my budget for living on a single income. It took a long time to rebuild it even to three months' worth. When so many people lost their jobs due to the pandemic, it was a wakeup call for me. I focused on paying off my debt during 2020.
Now that I'm debt-free, I have extra money to save. I also freelance a lot, which has helped me save money fast. I'm splitting my the money I save between my emergency fund, a down payment fund and a vacation fund. I was saving 50% for emergencies, 40% for a down payment and 10% for a vacation. Now that my emergency fund is in shape, I'll probably start saving 60% for the down payment and 30% for emergencies, while continuing to put 10% of the money I save toward a vacation.
Let me know your biggest money win in 2021! How did you accomplish it?