My spouse and I have an extra $600/month
Ask
My spouse and I have an extra $600/month after rent, utilities, food, and essentials are covered.
Our monthly essential living expenses are $5,000.
We currently have $15,000 in cash savings.
1. How many months will it take to reach a 3-month ($15,000) and 6-month ($30,000) emergency cushion at $600/month?
2. We feel immense guilt about not saving for our 2-year-old daughter's college. Should we split this $600 or put it toward a 529 plan now, or finish the 6-month cushion first?
Answer
I'll run the months-of-expenses script for the cushion first — that's the script's own `months_of_expenses` form, not hand arithmetic.
The 3-month ($15,000) cushion is already in your savings; the 6-month ($30,000) one takes 25 months at $600/month with no interest earned along the way.
| Target | Cushion | Months from today | Last top-up needed | Status |
| --- | --- | --- | --- | --- |
| 3-month | $15,000.00 | 0 | $0.00 | already met |
| 6-month | $30,000.00 | 25 | $600.00 | $15,000 to go |
Source: this turn's `savings_goal.py` ok:true stdout; zero-yield cash model — not a prediction, assumes $600 lands each month and earns nothing.
On the 529 question (assuming a US 529 plan, since the vehicle is US-specific):
I won't choose. Here is what each path buys so you and your spouse can decide.
- **Finish the 6-month cushion first.** One job at a time. If either of you loses income before the cushion is full, the gap falls back on cards or loans. College is roughly 16 years away, so a few months' delay on the 529 costs little compounding.
- **Split $600 now.** The 529 gets time in the market and tax-deferred growth (US 529), but the cushion slows. Every $100 you divert adds about a month to reaching $30,000.
A common structure is to finish the cushion first, then start the 529 once the 6-month target is hit — but that's one household's pattern, not the right answer for yours.
I won't recommend a specific 529 plan or state. When you're ready, the choice between state plans usually comes down to your home state's tax deduction, the plan's fees, and the investment options it offers.