I read quite a few posts this week about emergency funds, one of which gets a fist pump below. It made me think a lot about our emergency fund situation. We build it up a little bit, and then we use it – and not necessarily for an emergency. An emergency fund is the first baby step towards financial freedom. It gives a person the ability to handle those nasty unexpected breakdowns of water heaters and cars and whatever else without affecting your base budget of food, clothes and the necessites of life. But it also provides peace of mind to spend whatever discretionary funds available on enjoying life without constantly asking yourself, “What if?”
That’s super sized peace of mind, folks.
I really want to work on having that. I want to build up our emergency fund and mark it as untouchable. I want to work on the self control and self discipline to leave it the hell alone. So, I’m asking for your help, EOD nation. I’m going to give regular updates on my emergency fund balance here on my Friday posts. More on this next week as we begin a new budget cycle on 10/31. Tune in, and prepare to help me out. 🙂
Now, onto this week’s fist pumps.
Posts That Make Me Fist Pump
- It All Starts With an Emergency Fund from See Debt Run
- Love and Money: When Should You Have “The Talk”? from The Broke and the Beautiful Life
- You Can Change Anything from The Random Path
- Debt Reduction and Bickering from Prudence Debt Free
- The Answers to Your Financial Security Questions Are on Facebook from On Target Coach
Shameless Self Promotion
- Debt is a Four Letter Word, but Debt Consolidation is Nothing to be Ashamed of! is my post this week in the CareOne Community
I didn’t really start building up an emergency fund until this year. It’s a bit daunting hearing people talk about 6 month emergency funds, especially when we have so much going out the door each month for student loan repayment, but I am committed to building up our fund.
Hope you have a great weekend!
I know what you mean, DC – a 6 month emergency fund seems HUGE right now – BUT it all adds up over time. I see that just with my daughter’s allowance as she is hoarding her money after seeing her brother save up and buy his own computer. And that’s just with her allowance! The sooner I start, the sooner I’ll get there!
The wife sleeps much easier the larger that emergency fund grows. Thanks for your transparency.
I think I will sleep easier as ours begins to grow as well, Brent – thanks for stopping by!
Unfortunately, me emergency fund is in the dwindling phase rather than the build up phase due to unemployment 🙁 Can’t wait to turn it around again. Thanks for the shout out!
Sounds like you’ve found out a great reason WHY we need to build up an e-fund, Stefanie! Hope you begin to turn it around soon!
Thanks for the mention, Travis!
The emergency fund is something that I wish I had known about earlier in life. I don’t think we could have paid off our debt without it.
It’s one of those concepts you would think we’d want to teach kids about along with other financial literacy concepts before they enter the adult world, don’t you think, Jefferson? I wish I had realized it’s importance earlier as well!
We have really decimated our emergency fund this past summer. Unforeseen stuff came up. We now have to work on building it back up. I look forward to your emergency fund updates!
Thanks for the link love Travis! Have a fantastic weekend 🙂
You know very well the importance of the e-fund, Mackenzie – I don’t want every unforeseen thing to become a crisis. Hope you have a great weekend as well!.
Good list of articles, thanks for sharing 😉
Glad you enjoyed them, dojo – hope you have a great weekend!
I go back on forth on my emergency fund. I once built it up to $1,000. Then I used it to pay off my CC debt. I guess at the time I felt like that was a better use for that money. But I do understand the safety net idea.
I can see your rational as well, Lisa – why have money just sitting there in the bank when you could pay off some of your debt? On the other hand, I’ve lived the reality of going into crisis all to often just because we didn’t have one. An emergency fund is the best Christmas present I can think of to give to myself. Thanks for sharing your thoughts!