We have decided to make a little change to the bimonthly giveaway this time around and instead of giving away a number of small amounts, we are instead going to give $100 cash to help someone start (or reinforce) their emergency fund. When it comes to getting out of debt, one of the most difficult aspects many people have is getting that emergency fund in place, but it really is an important factor to succeed in your long term financial goals. There are plenty of ways to enter and I truly hope that we can help one of you get that emergency fund in better shape:
Of course, you should stop with entering this giveaway. Most people could probably benefit by spending a bit more time making sure that their emergency fund is adequately funded. Are you one of those people?
I found that the biggest hurdle for me when I needed to create my first emergency fund was starting it (and then consistently adding to it). When the main goal is to get out of debt and there are so many other bills and expenses which need to get paid, it’s easy to ignore the emergency fund. My guess is that this is the case for many people. The problem is that you end up ignoring the emergency fund at your own peril, and Murphy’s Law is bound make you regret not making it more of a priority. here are a few things that you should do today if you are one of those that has been ignoring your emergency fund:
1. Decide a emergency fund goal amount. My fist emergency fund was $500. Once you reach that minimum, set a new goal. Then another until you reach the point where you feel confident that your emergency fund is enough to withstand any possible emergency.
2. Figure out a way to reach that goal as quickly as possible. I funded my first emergency fun by selling stuff around the house. Chances are you are going to have to go beyond your regular income to make this happen, but that shouldn’t be a reason to give up. Yes, it will take effort, but having it in place will make reaching your financial goals so much less stressful.
3. Don’t forget about it. The emergency fund is something that should be added to on a consistent and regular basis. The more you are able to fund it, the more secure you will be in reaching your financial goals.
I have been quite thankful that I have had an emergency fund in place a number of times in my life. It includes one time when my car decided to break down in the middle of nowhere and required a several hundred dollar tow to get it to the nearest gas station (this was even with AAA). Or the time I had a tooth broken at the nerve during a basketball game and dental insurance that still left me with a $500 dental emergency bill. In both cases, the payments were painful, but I had the money to take care of them right then and there without stressing about how I was going to come up with the money.
Do you have an emergency fund and have you ever had to use one in the past?
If you are a blogger and would like to participate in future giveaways, you can get more information here. It’s totally free, and it will help your blog improve its social media accounts.
Jeffrey strain is a freelance author, his work has appeared at The Street.com and seekingalpha.com. In addition to having authored thousands of articles, Jeffrey is a former resident of Japan, former owner of Savingadvice.com and a professional digital nomad.
We had our emergency fund funded to 9 months worth of expenses… And then I had to have emergency surgery in July. Wipeout! Ouch! Glad it was there, but super stressed right now because it’s not there anymore.
Yes we do have an emergency fund, but for years my credit cards were my emergency fund. It took me years to realize this was not the smartest way to handle money. It’s still hard to save each month. My son just went off to college and we are not using credit cards or student loans, which I am proud of. It’s just hard to save and then spend so much of it. Thanks for doing this contest!
We had to use some of our emergency fund when I was laid off from my job.
We do have a emergency fund. It started when we emigrated to Switzerland where there is almost no social security for foreigners during the first 5 years you are in that country. Loose your job and you have to leave the country. Once we realised this we kind of panicked and started paying off any debts we had and started an emergency fund. All debts were gone after 16 months and than the saving seriously started. We now have an emergency fund equal to about 12 months of living. It makes us feel very secure.
A broken washing-machine and a fellow road-user who totalled our car (where you never get payed out what the car was worth to you) are common examples of emergencies which were financially not as bad as they could have been. But interestingly also very happy events can be financial emergencies. My wife unexpectedly became pregnant of twins. Great news to us, but growing our family from 3 to 5 children could have been an financial nightmare. Thanks to the emergency fund we could cover the needed costs for another car, new but frugal, and an extension to our house without having to borrow any money. So we now call it the happy-fund!!
I needed to dip into the savings when planning our wedding last year.
Diana C
Yes I had to use my emergency find to fix my car
I had to use my emergency fund to pay to replace my notebook computer when it unexpectedly died and also shortly after for my university graduation
We had to use the emergency fund when our well pump died unexpectedly… having a house with no running water definitely qualified as an emergency!
I had to use my emergency fund for a sudden move.
My emergency fund took a huge hit/was a lifesaver when both my father & mother became seriously ill within 3 months of each other. I was able to be there for both of them, and not worry about paying my home expenses.
It’s been a long term goal to rebuild the fund.
We have an emergency fund but it’s hard increase it every month due to unexpected expenses such as new tires, repairing plumbing and having the foundation of our home being leveled.
We have had to use our emergency fund to cover car repairs, healthcare costs, and a move to a different city. We need to build it back up!
The last of my emergency fund was used to pay for an unexpected car repair. It cost $2,000 and I still haven’t managed to save any money since. Of course, part of the problem is that I’ve unemployed/underemployed/temporarily employed for nearly four years.
I last used my emergency fund to pay for unexpected dental work.
Hey Jeffrey,
How about an update from Tricia and Beks? Hadn’t seen one for a while. Thanks!
They both have access to post on the blog anytime they want, and I know that they drop by from time to time. I will send an email out to let them know about your comment in case they miss it.
\We used our emergency fund when my husband decided to buy a vintage car he liked- against my wishes. No matter how angry I get or how little groceries we can buy, I can’t control that man. 🙁
We are just about to dip in to our emergency funds…gulp! Just when the debt-free horizon became visible in the far distance my husband lost his job. We have cut expenses drastically…got rid of cable, etc but it still won’t be enough to make it through the month. I already have a second job on the weekends so I am expecting to have to use it to pay for something before the end of this month. I saved quite a bit so we should be alright for a bit but it stressing me out no end that I will have to use it all! We worked so hard to save it and now we have to spend it. Hopefully he will find something soon and maybe I will avoid “the dip.”
I’ve never had enough money for an emergency fund
My fiance and I are both in shaky job environments right now so we are desperately trying to stock up an emergency fund and cut expenses just in case things go wrong for one or both of us!
Yes my husband needed a root canal and a crown and we have no insurance 🙁
Yes, My husband was diagnosed with Lymphoma and underwent almost a yr. of Chemo .. We went through our savings .We are celebrating his 10 yr anniversary of being cancer free
We had a full year emergency fund. My husband lost his job than I lost my job. We were able to survive on our emergency fund over over two years until my hubby found his job. We are not still struggling his pay was cut by 35% but we are managing.
I don’t have an emergency fund while I’m paying off cc debt. As long as I have the credit available on the card, I’d rather put the cash toward reducing the debt and the amount of interest I pay, and then will use the card in an emergency.
I’m grateful that I haven’t needed it yet.
I used emergency fund money for my refrigerator that broke down last month.
We’ve never had enough money to save for an emergency fund.
I have never had to use my emergency fund
I havent had to use my emergency fund yet!!!
We have had to use our emergency fund and haven’t been able to rebuild one. I got sick with chronic Lyme disease in 2008 and have been on disability every since 2010. I lost a very well paying job over night.
We had to use ours recently. We have been broke and needed food.
What emergency fund?
I’ve actually never had an emergency fund. It’s hard enough just to pay the bills from month to month. I’m just not able to set money aside for an emergency.