Thank Goodness for Emergency Funds

January 16, 2012 in Saving

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?

Photo: sxc.hu

Related Posts Plugin for WordPress, Blogger...

{ 7 comments… read them below or add one }

Tiffany January 16, 2012 at 5:55 pm

So, so true… It is amazing what a difference that fund makes in how you physically feel when dealing with emergencies. :)

Reply

Single & Saving January 16, 2012 at 10:47 pm

You’re so right about the physical feeling, Tiffany. I’d probably be having a panic attack without it.

Reply

Emily Hunter January 17, 2012 at 6:29 am

I’m right there with you on the emergency fund. What I’ve found is that once you’ve had one for a while, fewer and fewer things get called emergencies. I love the safety net that it provides.

Reply

Single & Saving January 17, 2012 at 9:22 pm

That’s a great point, Emily. That extra money can be tempting to use for minor things that aren’t truly emergencies while building up the fund. After seeing what a great tool it can be, I’m getting much better at using it only when I think it’s really necessary.

Reply

Emily Hunter January 17, 2012 at 9:41 pm

Watch out, though. After it gets depleted for your necessary things, the emergencies seem to pile up once more. It’s not that things go in threes, but more that the stuff that was already looming decides to make itself known. I depleted my fund to get my mother a car, and then there were health issues and other things. It almost makes me want to put a fund behind the fund, you know? Thanks for posting about this. :)

Reply

fly won January 23, 2012 at 3:59 pm

I’m just now beginning to save and research saving and the benefits, I’d always been a carpe diem kind of girl. But I feel empowered to be more responsible now.

Reply

Single & Saving January 23, 2012 at 9:29 pm

That’s great! I think saving becomes less of a sacrifice once you see your money grow and the security it can provide. It’s great to find that happy balance between seizing the day and saving for the future.

Reply

Leave a Comment

Previous post:

Next post: