Emergency Funds
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Emergency Funds
| 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.
| 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.
Congrats to you for wanting to follow Dave Ramsey.
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.
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
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
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.
Dave's plan is all about focus.
Thank you all for your words of wisdom!
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 -
The idea is to start with a $1000 baby