You do have an emergency fund don't you? (No a credit card is not an emergency fund.) Assuming you do have an emergency fund, what constitutes using this fund?
I've experienced some unplanned financial expenses here of late. Today, my son's car is in the shop getting a once over. Earlier this week, I took one of our two dogs to the vet and the cost was just over $350. (Ouch)
Are either of these two things emergencies?
The car repair. . . NO.
The vet. . . Yes.
Here's why. First, I save money on a regular basis for car repairs. Cars will breakdown from time to time or need routine maintenance. (I'm pulling funds out of my car repair savings for this.) My dog needing surgery was an unplanned and unforeseen large expense. (i.e. an emergency.)
So, I use my emergency fund for unplanned unforeseen large (over $100 for me) expenses. Once I use emergency fund dollars priority #1 for me is to replace those dollars ASAP to get the fund back to "normal".
Saturday, February 21, 2009
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4 comments:
hi Todd - new reader here! :)
Do you have any $ set aside for the health of your pet? Human medical care has monthly cost (insurance etc) and the way I see it, what you plan for one member of the household you should plan for all of them. Animals get sick too and that is as predictable an event as the car breaking down. :)
I suggest having a small amount set aside every month for your pet care (To cover checkups etc) and that way you would reduce the chunk needed out of your emergency fund.
Hope your pooch is on the mend. :)
Cindy,
Thanks for the great comment. Saving for pet costs especially vet costs is a great idea. We took the funds from our emergency fund but I think i'll start allocating some saving dollars for vet costs. One, it's a great idea, two, I hate touching my emergency fund.
Oops, Christy not Cindy. My wife was in the room and her name is Cindy.
how much should a single person have in an emergency fund? and i'm a college student how much should i have set aside for "emergencies et all.."
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