This week in our Thrifty Thursday series, we'll be talking about saving up a mini emergency fund. Now when I say mini, I mean that this will be your first emergency fund and you will be making your real full one later.
As I have mentioned, I use Dave Ramsey's budget forms but I also follow a couple other of his suggestions. I don't agree with everything he says but on a few of his points, I totally agree. He suggests saving up $1,000 in an emergency fund to get you going, before you move on to paying off debt.
Now I know that for some people $1,000 may seem like not that much and for others it may seem impossible. Either way, you should have $1,000 put aside for emergencies. Emergencies will come up at some point and you want to be prepared for them. The goal of this $1,000 is so that you can use it instead of having to go into debt to pay for said emergency.
You want to save up this $1,000 as fast as you can, so be sure to put all extra money into this account. If you get a bonus from work or a gift from your parents or you sell something or whatever, put the money aside for your emergency fund. You will feel a lot safer once you have some money marked solely for surprise expenses. And that way, you can continue to stick to your budget even when unexpected things come up.
Just remember to make rules for this fund, outline what an emergency is and stick to it. If you are married or in a relationship, discuss this with your significant other and be sure you are on the same page.
The emergency should be a truly unexpected expense that takes you by surprise. And something you HAVE to pay for immediately. Vacations or new electronics don't count as an emergency. A car accident or job loss do. Just be sure to set guidelines and stick to them.
So there you have it, my opinion on emergency funds. I will be discussing a full emergency fund further into the series but for now, we will start small.
Now, questions for my readers!
1) How did you do with the "Just Say No" challenge that I gave you last week? Were you more careful with your money? Did you give in to impulse buys or did you stay strong? I want to hear how you did!
2) How are you enjoying the topics I have chosen for this series? Good or bad? Do you have any points that you want discussed or topics that you would like my opinion on? Please speak up, I like to keep my readers happy and I want to talk about things that are relevant to you and answer your questions.
Thrifty Thursday Mini Series
Week 1: Tracking Your Spending
Week 2: Monthly Budget
Week 3: Just Say No
Week 4: Mini Emergency Fund
Week 5: Buying vs Making
Week 6: Coupons
Week 7: Debt
Week 8: Christmas Gifts
Week 9: Thrift Stores
Week 10: Finale