E is for Emergency Fund

Emergency Fund

For the first time in MY WHOLE LIFE I have maintained an emergency fund. It’s sad to admit that I have never been a very good saver. Since the hubby and I have decided to take on Dave Ramsey’s baby step program we have been able to keep our “baby” emergency fund of $1000 in the bank. Yay!

Last week I was cleaning my kitchen and I had my coffee pot out on the counter and the cord was hanging down to the ground. (Yes I am a mom of two young boys I should have known better.) And you guessed it, my one-year old came over and yanked on the cord and pulled down my coffee pot and of course it broke. So my husband was kind of excited because he immediately thought that his cheap wife would let him buy a keurig. I knew there was not $150 in the bank account that could go towards the keurig.

My coffee pot breaking was an eye opener for me because it felt like an emergency!! I too have had my eye on a keurig. I just haven’t been able to justify the expense because I already had a coffee pot that worked just fine! But now that it was broke, it could have been a good time to upgrade. But where would that money come from if we purchased a keuirg? My emergency fund? It felt like an emergency. But it really wasn’t… so I went out and bought a $25 coffee pot that would do the job.

So what would I be willing to spend my emergency fund on? What constitutes a true emergency? Here are a few things came to mind that I would consider to be emergencies versus what would not be considered a true emergency.

  1. Getting a nail in your tire and it needed to be replaced asap VS. Knowing your tires are wearing down and they will need to be replaced soon.
  2. Washing machine breaking down VS. The dishwasher brakes and you could wash dishes by hand until you save for a new one.
  3. An unexpected medical emergency VS. A scheduled annual exam copay.
  4. A car accident happens and you have to pay a deductible VS. Knowing your premiums are due and you didn’t save for them throughout the last 6 months.

Hey, life happens and sometimes we forget about regularly scheduled expenses, if that happens and you have to use you use your emergency fund don’t beat yourself up about it. Use your emergency fund and work hard to put the money back into the savings account and then try to plan out your expenses better in the future!

What would you consider spending your emergency fund on?

❤ Sarah

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14 thoughts on “E is for Emergency Fund

  1. Coffee is a serious matter! So for some people dipping in the emergency fund to get the cup of jo flowing in the household may seem like a joke, but I get it. It’s just funny how coffee has become so important in our culture….Lol!

  2. Congratulations on getting your emergency fund built up! I know I feel great knowing it’s there for true emergencies. I keep ours in a high interest savings account(TFSA) so it’s making me money while it sits waiting to be used!

  3. Hmmm, what qualifies as an emergency to me?

    1. A visit to an emergency room

    2. Only owning one vehicle and it needs to be repaired NOW. Tires wearing out (depending on how bad) also qualify for me because it’s dangerous to risk a flat.

    3. Losing your job and using the funds to live on. While you job hunt- only if absolutely necessary.

    Yeah, those are the only things I could come up with that I truly justify as an emergency. Not even the washing machine gets a spot on my list- laundry mats are out there. I am pretty hardcore about what I consider an emergency. 😦

    • You are right about the washing machine… I suppose I could always use my mother in laws since they are right next door. Gosh look at you making me more responsible in this hypothetical scenario. #3 for sure, that is exactly why it is good to have an emergency fund because life happens.

      • This is why you need savings in addition to your “emergency” fund. You can draw from the savings to pay for the washing machine and other non-emergency yet pretty essential items (especially for large households like ours.) I have carried my laundry other places, including laundromats. However with 7-10 people in your house the expense and time of doing that would be much more over time than biting the bullet now and replacing the washing machine : ) So…S is for savings in addition to emergency fund : )

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