The Impact of the recession and how we save is a nice article from Forbes.
In it, the author discusses how the short and long-term savings have been impacted. Based upon an 2009 survey of 25,000 Americans, the study shows changes over time. As it relates to us, I think we’ve kept our focus on keeping the short-term (Emergency fund) lined up with our Longer term (Retirement).
Although, recently, we’ve had a change of heart on our Emergency Fund. We’re not sitting at a 6 month cash reserve, and we do want to be better prepared for the eventual death of one (or both) of our paid-off automobiles. With that in mind, we’ve shifted our focus over the next 6 months or so, to more aggressively build up our Cash Reserves. We don’t anticipate any immediate need for gobs of cash, but we’d rather be prepared. (No, I wasn’t a Boy Scout).
How about you? Where do you sit in the Emergency Fund vs Retirement Savings?