A key point in potentially becoming wealthy is starting early. Unfortunately, I haven’t started that early. But luckily, I’m only in my early 20s and I can still do pretty well for myself. But I did realize one thing after jumping on the money blog bandwagon - I don’t have 6 months of expenses saved up. Let alone, 3 months!

I’ve come to the conclusion that my expenses for each month, this includes the budgeting of my paycheck plus groceries and entertainment for one month, is roughly $1,350. And I have less than $3,000 saved up so far and a 6 months of expenses total up to $8,100. Although 2008 will probably be a rough transition period for me because I will be moving (goodbye small rent) and hopefully getting a new job, I have to stay positive and focus on my goal of saving. Although in January when I would have to adjust my figures because of the new changes, I would still need to save up a good chunk of change.

At my current rate of putting in $368/month to my savings, I’d need nearly 14 months to make up for the rest - $5,100. Hopefully in the near future, the time required will be at least cut by 1/4th. Let’s make this clear:

End of December 2008
Emergency savings: $8,100

Why do I have a feeling that this number would have exponentially increased by the time I’m 24, less than one year from now? When I move out and find a new place, the rent for myself should be around $750. Now let’s readjust the figures and such: Adding an addition $627 to rent will put my 6 months of expenses at $11,862. Christ, looking at my projected 6 months of expenses is depressing.