Emergency Funds

iVillage Member
Registered: 05-14-2008
Emergency Funds
9
Tue, 05-27-2008 - 3:02pm

hi all,


in recent weeks, I have been reading alot of Dave Ramsey's site and his baby steps make sense.

iVillage Member
Registered: 02-04-2008
Tue, 05-27-2008 - 3:24pm

Congrats to you for wanting to follow Dave Ramsey.

iVillage Member
Registered: 05-14-2008
Tue, 05-27-2008 - 3:31pm

you are right, I did initially misread what Dave was saying but I think I worry that $1000 isn't enough but then again I can't afford to fund it any more.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 05-27-2008 - 4:38pm

I don't think any of the finance "gurus" expect you to fund 3 to 6 months (or more) of expenses quickly.

All my best,
Danni

iVillage Member
Registered: 11-17-2007
Tue, 05-27-2008 - 11:24pm

Big funds are not in place over night. But they all start with a change jar. Put a months full of change in a change jar, roll it up and take it to the bank on the last day of the month. Then what you got say 5 or 10 dollars start you a money market account or an online account

iVillage Member
Registered: 09-25-2003
Wed, 05-28-2008 - 3:01am

I have a tiny bit more than a thousand dollars in my e-fund right now. It doesn't really bother me that this isn't actually enough to (for us) cover 1 month's expenses. It's enough to prevent us from using the cards again if we need to (insert actual emergency) and that is what it is for. I am trying to stay focused on getting out of debt and then I will continue building my e-fund.

If it worries you, could you continue adding to your efund while you pay down your debt? Maybe you could add $5 per week to it, and then you would have a little bit more security and be able to know that you were working toward that security.

Living a lean life is a great start! And after awhile, it is kind of nicer. I find it a lot less stressful, both because I don't have to worry about money as much, and because there is less stuff in my life to deal with.

iVillage Member
Registered: 03-26-2003
Wed, 05-28-2008 - 5:53am

Dave's plan is all about focus.

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iVillage Member
Registered: 05-14-2008
Wed, 05-28-2008 - 7:59am

Thank you all for your words of wisdom!

iVillage Member
Registered: 04-10-2003
Wed, 05-28-2008 - 10:46am

Hi there! I agree with PP's. My efund is sitting at . . . wait for it . . . $84.00 lol. It was at $1000.00 a month ago, but I had to go the the dentist and get glasses and prescriptions filled. I have to pay out of pocket for all these things and then get reimbursed. The good news is that I DO get reimbursed for 80% less and it will go back into the efund. From there, I will do half debt reduction, half savings until it is back up to $1000.00.


Bex -

iVillage Member
Registered: 03-27-2005
Wed, 05-28-2008 - 12:34pm

The idea is to start with a $1000 baby