barnaclebob wrote:The wife and I were left with about $2500 in our bank account with no other taxable investments the month after we bought our house. However we were saving about 4k a month (50% of take home) at that time so the risk was if something big happened within the first 6 months or so. That risk wasnt great enough in my opinion to delay buying our house.
I would say that if your bank account balance is going up significantly, say maybe at least half a months expenses every month and your jobs are relatively stable then you are probably safe.
It was similar with my current house. Went down to $40 in my bank account. But I was still putting in enough to max out my 401k and Roth and put some back into the emergency funds. I also had enough in my taxable to pay for half the house. So I wasn't worried about "cashflow" basically for those six months. If anything happened, I could also pull the funds from elsewhere.
To the Op, one thing was I found a house I loved, was in good shape, but needed some updating. So slowly we've been doing things. First removing the popcorn ceilings before moving in, then furnishing one room at a time, then redoing the master bathroom, then replacing the water line that burst. Recently we've done landscaping and now are about to start on one of the extra bathrooms and tackle flooring. We've been in the house three years and I'm still making changes, but I'm not tapping into savings nor stopping our lives.