Savings Safety Net

Some recent events have started me thinking about the need for me to flesh out my personal safety net. Conventional wisdom holds that you should have the equivalent of 3 months of your net salary in savings for emergencies. I’ve been more focused on long term retirement savings over short term, but I’m beginning to think that might have been a mistake. So I’ve decided to dedicate the first half of 2008 to the following goals:

• Increase my safety net to 3 months take home pay
• Identify recurring expenses which can be eliminated
• Add to my professional certifications
• Reconnect with 10 professional contacts a month
• Update my resume

I think the lesson for me anyway is that I need more balance in my investing. Ideally I’d probably make this transition a more balanced one rather than making a 180 degree change, but my concerns are somewhat time sensitive. By June I should be in a position to reevaluate my overall strategy and I think the next iteration will do a better job of determining and funding my investment priorities in the proper proportions.