Well - we've been in Baby Step 4 for a while (invest 15% of your income in retirement), but now we're back in Baby Step 3 (save a 6 month emergency fund).
We had our 6 month emergency fund saved before ($30,000), but several "emergencies" in 2011 caused us to dip into that money.
- replace mini van ($15,000)
- replace dh's car ($15,000)
- replace furnace ($6,000)
Truth be told - none of the above "emergencies" were actually ture emergencies. They were all things we knew we would have to replace and we should have been saving up for them in sinking funds. But - we were caught before our sinking funds were funded, thus turning those situations into "emergencies" - or at least making us decide to dip into our Emergency Fund to pay for them.
You may note that the total of the Emergencies adds up to more than $30,000. And, luckily, our emergency fund isn't completely at zero (we have $8,000) - so, I guess that's a little good news. The bad news is that we have to get that account back up to $30,000 as quick as possible.
According to my projections, we should be able to have the savings back up there by the end of July - hopefully sooner.
So, that's what's going on with me. I'll try to update again soon!