Please accept my apologies for being slow to blog and in responding to comments and emails this lately. In a moment of clumsiness last week, I dropped my computer and broke the LCD screen. I quickly realized how dependent I am on my computer and arranged to have it repaired. To make a long story short, I dropped off my packaged computer with my building’s concierge service to have it shipped and they may have lost it.
While I’m angry, frustrated and upset over the situation, this is one of those moments when I’m really glad that I have an emergency fund. My computer may be lost or stolen, but I’m glad that I can pay for a new one immediately without going into debt. Building six months of expenses and not touching it has required some sacrifice and patience, but it will be worth it if even bigger emergencies come along. Accidents, job loss and repairs often blindside us, but these situations are much easier to deal with when we’re prepared. It’s a lot easier to turn lemons into lemonade when you have the right ingredients.
To prepare for emergencies that my pop up in your life:
- Automatically transfer money from each paycheck to your emergency fund.
- Find areas in your budget where you can spend less and devote additional money to your emergency fund.
- Put money from work bonuses, tax refunds and gifts into your fund instead of spending it.
- Don’t be tempted use emergency fund money for non-emergencies. Putting it in an online account that isn’t linked to your checking account may encourage you to not touch it.
Do you feel like you’re ready for emergencies?