Be your own Superhero With an Emergency Fund

Remember when i spoke about emergency funds and how I was truly stuffed when i lost my job before i had saved one?

I read a great post from Middle Age Money Man about how his vehicle needed one repair after another which completely annihilated his emergency fund, and of course, by the Law of Murphy, this happened right before a family trip.

The huge takeaway from both my experience and his is that life happens! You could be coasting along quite happily, on your merry way when a boat load of Sod’s Law kicks you up the arse.

Financial preparation is seriously important. It only takes one unplanned event, one emergency that you can’t afford, to send you back down the spiral of debt that so many have worked their backsides off trying to get out of.

Some people suggest saving 6 months to a year’s worth of expenses into an emergency fund. Don’t worry about the numbers. A year’s worth of expenses sounds unimaginably daunting but you have to start somewhere.

Save something, Anything! Any little bit of saving for an emergency fund is better than nothing and those little somethings add up.

Those little somethings saved can be the difference from an emergency being crippling, to just being an inconvenience.

Make an emergency fund the priority, before any debt overpayments, any little ‘treats’. Trust me here, you don’t need a superhero, you can save yourselves!

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6 thoughts on “Be your own Superhero With an Emergency Fund

  1. First I want to say thanks for the mention. I also want to say that you have an amazing site. I will definitely follow you. Great information to be found here.

    1. Thank you Robert, Really appreciated. If I can help just one person who has been in our situation then I will consider this site a success.
      Love your site, have been a lurker for some time!

  2. I couldn’t imagine not having an emergency fund. Luckily, we’ve not had any major, unanticipated costs spring up besides some of my wife’s medical licensing expenses. We took those on the chin but will be reimbursed down the road by her employer.

    And I find that emergency funds are also best labeled as “infrequent yet expected expenses” funds. For example, you don’t need to replace the belts in your car regularly, usually only once or twice over the life of owning the vehicle, but they are known expenses. I think confusion lies with true emergencies and unexpected expenses versus infrequent yet expected expenses. They don’t always fit neatly into a monthly budget, but over the long-term, can be planned for.

    Great read!

    1. That is an excellent point about known but unexpected expenses. Your example of engine belts is a perfect for explaining something that we all know will need doing at some point, we just dont know when!
      Planning is definitely key!

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