I learned a valuable lesson this week.
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| Sat, 01-01-2005 - 1:20pm |
Well, I never bothered to have an emergency fund, because I wanted to put the money down on debts and also because the two of us make money pretty consistently - I get paid by some clients at the beginning of the month and some at the end, he gets paid every second week. Well, that came around and bit us this week. We had spent most of the cash we had, because we are avoiding charging anything, and we knew we were going to be tight, but figured we'd just make rent ($30 to spare). Well, yesterday morning I asked Fi to check his bank account to see how much he'd been paid, and guess what? He hadn't been paid! He called his work, and no one at his location had been paid. (We're not upset with the payroll person - everyone makes mistakes).
We had to take a cash advance off my credit card to pay rent. We had other options, but not really enough time to do any of them, so we used my card to get the rent covered quickly.
So now we are going to build an emergency fund, because that was much too stressful.
We're also avoiding spending money this week, because we have to pay off some of this debt quickly, just to feel better. Then it will be a return to the regular plan.
I think we can make it for 6 days without spending money on anything other than gas for the car. We have lots of food in the house, and we have gift cards galore to buy stuff with, so we don't feel deprived.

Wow! Good thing you asked him to check the account!
Pat
Whew! Good thing you had him check! My brother and I both had similar situations this past week. He didn't get paid due to his own mistake (he filled out his new hire stuff wrong) and then his bank put a hold on the deposit once he did get paid because it's a new account. I, on the other hand, have been out on sick leave and misunderstood the sick pay schedule. So, I got paid $300 less than I expected. Yikes!
I know I need an emergency fund but it's so hard when every penny counts! Luckily ds and I live rent free at my mom's house but we hope to move in June. I want some sort of emergency fund by then!
Hugs, Malea
I am wondering how to develop an emergency fund too. It's hard when, ever since my job was cut, our income has been less.
Good luck with your emergency fund. I am doing this by nickels and dimes. (And quarters). So far, I have $15.50 under my bed, and I am not going to use it for anything. (Even though I went to the store today to return something, and I saw so many things I would like.)
I would love to have the problem of too much money!
All my best,
Danni
Danni,
I am in on that too. Right now, I'm building our freedom account. It's for those yearly, quarterly, etc. expenses. I'm also using it to save up for furniture for our new house and a down payment for a minivan.
We have a good sum of money in saving. However, that's for when we close. Still don't know the exact date or how much we will need. After closing, if there's money left in saving, I want to take 1/2 of it for an emergency fund and the other half for snowflaking.
MYM