If you think of it rationally. It is always good to know what you absolutely NEED in order to survive. That being a roof over your head, utilities paid and food. However I don’t see how this information, other than to make it easier for you to set up your budget, could help. And what I really don’t understand is, that a lot of influencers in the debt free community say that you should use this number to base your emergency fund upon.
This makes me angry, this information getting spread everywhere is mind-blowing. Either they have never gone through serious hardship, or they forgot about it, or I don’t know. I don’t want to offend anyone here though, because I’m sure the advice given comes from a real honest place to help others, Nevertheless…
According to many people in the debt free community your emergency fund should be your bare essentials budget times 3, or 6, or even 12, or however big or small of an emergency fund, you think is enough.
Let me say something here. As someone who has gone through many crisis, and I’m sure I’m not the only one, going through a heartbreaking, devastating crisis on a bare essentials budget, looks like pure horror to me.
I don’t want to go through job loss, losing friends or family, illness, divorce , break ups, etc on a bare essentials budget, and neither should you. Life is too precious. You should go through hard times on your regular budget, with and added little cushion to treat yourself. There should be room in your emergency budget to take a weekend with your best friends and talk about it, or drink cocktails while laughing and crying, there should be room for Ben and Jerry’s so to speak, or for a wellness day. Heck there should be even room to pay for therapy if you would need it. Anything else than all of the above is hurting yourself even more while being already in crisis. You wouldn’t want your best friend to suffer like this, so why would you have to.
Just some thoughts on this,