Using your emergency fund

iVillage Member
Registered: 09-22-1999
Using your emergency fund
12
Sun, 01-09-2005 - 9:02pm

Many of us have just begun to save in earnest in our emergency funds. Hopefully we will not have to withdraw from them anytime soon, but IF you had to withdraw from it in the future, what 3 types of spending events would you consider an emergency that you would use your fund for?

For example:
Auto repairs?
Overdue Rent/Mortgage?
Medical copay?
Preventing an overdraft?
Home repair?
Emergency trip?

Do you have a separate emegency fund for any special purpose?

Looking forward to your answers, Littlesbigs

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iVillage Member
Registered: 05-30-2003
Tue, 01-11-2005 - 12:55am

It varies as to what I consider a true emergency.

An unexpected car repair. An emergency trip to my mom's. An unexpected home repair. Maybe something like these.

I do know as we go, things that I used to consider an EMERGENCY aren't anymore because I know that I can stop the debt snowball and use that money, plus any we have in savings, plus creative financing to pay for the ___________.

Once we really get rolling on the snowball, we also plan to fund envelopes that will be just for car maintenance and home repair-things like that.

Lisa

Avatar for gidgetgirl
iVillage Member
Registered: 03-26-2003
Tue, 01-11-2005 - 11:53am

Auto repairs?
We have a separate freedom fund for car repairs, so we don't think of them as emergencies

Overdue Rent/Mortgage?
Mortgage is planned for in the budget

Medical copay?
We switched plans so the only copays are rx, but those are planned for, plus we have a Health FSA to get reimbursed.

Preventing an overdraft?
We're pretty good about watching the balance, but we do have free overdraft protection if we need it

Home repair?
We have a SMALL freedom fund for this. A large repair, such as a new furace would come partially from the emergency fund

Emergency trip?
This would be from the emergency fund and possibly spill onto not paying off the credit card after the first month. This is not something you can really plan for, whereas the others you can (somewhat).

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