My emergency fund

iVillage Member
Registered: 09-22-1999
My emergency fund
3
Fri, 10-22-2004 - 12:20am

This year is the first year that I have really worked on maintaining an emergency fund, and I have to say that I am so glad I have adopted this new habit. There have been days where I just wanted to cash it in and blow it, but I knew much better than that, and when I had a couple legitimate "emergencies" (in the last 2 months), it was there to help me out! I was so happy! Don't worry....the emergencies were insurance bills..... But, what a RELIEF to have the money to draw from......

I wish I had started this emergency fund a very long time ago. I know this is a habit I will keep up from now on.

I have just decided right now that I need the emergency fund to exist more than I need to go spending/shopping. I got a better feeling knowing it was there than the feeling I got going shopping. (Maybe I am changing????)

My method of saving is to continue to keep saving as a habit. Every paycheck it is treated a another bill I have to pay....I have to PAY ME! I allocate it along with the rest of my bills, and that is it. And if after paying everything that is a bill and my emergency fund there isn't much left to spend, well, then that's too bad for me, but that is something I have done and I can deal with. I can deal with it!!!! Hurray!!!!!

Littlesbigs

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Fri, 10-22-2004 - 1:49am

I remember when you weren't working. Having money saved helped you alot. I think it's a great idea to treat it as bill (to yourself).We are in the process of building a new home. We turned in our leased Mercedes (suv). I now take that payment ($530) and put into a house fund. I want to make sure we have money for any emergency that comes w/owning a home.

Also, my husband received a $20,000 salary increase. I take the pay difference and divide it between snowflake and saving.

MYM




Edited 10/22/2004 1:51 am ET ET by mymartes
iVillage Member
Registered: 01-30-1999
Fri, 10-22-2004 - 9:06am

i have my small emergency fund(1000.00)and I started my freedom acct a few months ago. I'm just starting to get ahead on it (it takes awhile to beef it up) and it feels great to know that those large taxes or insurance bills can be paid b/c the $ are in the freedom acct alreadt set aside.
Saving money is a big stress buster. Although I'm not where I need to be yet, I'm on my way.

Michelle

iVillage Member
Registered: 03-28-2003
Fri, 10-22-2004 - 11:08am

My emergency/freedom accounts are the best thing I've ever done. I now have 13 individual freedom accounts. I believe every dollar needs a name so it can be controlled and told what to do. If I just had an account with a grand total I believe I would be tempted to use it more freely. By having every dollar named I know what purpose I am saving for. I know I can't spend $100 dollars on a new outfit because I only have $50 saved for new clothes. I know I can't go on an expensive vacation because I haven't yet saved the necessary funds.

This may sound restrictive but actually it is very freeing as the name implies Freedom Accounts. I use to never buy myself clothes but now I deposit $50.00 a month into the clothes freedom account and I am FREE to go shopping. I can shop now or I can save up for several months and have a real spree.

My accounts include the emergency fund, gifts, clothes, auto ins, car maintenance, house ins/taxes, home repairs, med/den/vis, vacation, DH hobby, new home savings, vehicle replacement, furniture.

I could be reducing my debt a little faster but I would also be having set backs when any of the above items came up. Now I can stay on track with both saving and debt reduction.

Julie