Financial Freedom Fridays-Emergency Fund
|March 11, 2011||Posted by Jessie under Financial Freedom Fridays|
Well I had a completely different post ready to go for today but after last night’s fiasco at our house, I changed up my plans. You’ll have to come back next Friday to see the super cool, applicable post I had planned:)
One of Dave’s first baby steps in his plan for financial peace is to get $1,000 in your bank account. To some people this may sound like a lot and to some this may sound like nothing. Once you have your debt paid off, he advises you to get a 3-6 month emergency fund built up. Since we don’t have our debt paid off (but very close!) we don’t have the huge emergency fund we would like, but we do have over $1,000 for emergencies. If you don’t have this right now, do it. We learned first-hand last night you may never know when you may need it.
I came home to a very chilly home yesterday and thought that frugal man I married had just turned down the heat (which he typically does). I cranked it up and then after freezing my booty off for another half hour I realized something was definitely wrong. I texted Mike and he, of course, asked me the basics-”Are you sure it’s on?”. Duh. Checked that already. He came home soon after and after trying to fix it himself with his
very extensive furnace background manly instincts, he realized this was a bigger problem than we were able to handle so we called the experts. An hour later and $276, we were back in business. As the whole thing was happening, Mike made the point that at least we didn’t have to worry about the financial aspect because we had our emergency fund and were covered for expenses just like this. In a not-so-exciting situation like this, it’s really nice to not have the added stress of “how are we going to pay for this?” Granted, it wasn’t a huge amount of money, but still an unexpected cost.
After defrosting and cheering up, Mike looked up the part online that the furnace guy replaced only to bring our spirits back down-Mike could have bought the part and replaced it for-are you ready for this?-$19. Yep, $19. Oh well, lesson learned.
Point being, if you don’t already have an emergency fund-get one. Stuff breaks down all the time. You don’t want to break down with it.
Come back next week ready to download a money saver!