Why I have an e-fund

iVillage Member
Registered: 05-28-2003
Why I have an e-fund
6
Fri, 01-09-2009 - 5:41pm

There was some discussion earlier today about Suze Orman's advice on Oprah. I didn't see it, but from the posts, I gather she suggested people pay down their debt rather than sock their money in savings. I think people can do both.


I paid $221 today for new brakes for DH's car and next week we'll shell out nearly $800 to fix my car. It isn't fun, but we have the money in our e-fund, which saves us from unfreezing the credit card. It will take some time to get our fund healthy again, so our snowballs will be smaller, but it's better than adding to our debt.


Meredith

iVillage Member
Registered: 07-02-2008
Fri, 01-09-2009 - 5:43pm

Good for you Meredith!


I am on board with having a $1,000 e-fund. That way if something unexpected comes up (like it did for you) and for us we had to get new tires for my DH's car, you have some money to use that isn't coming out of your already tight pocket OR on a c/c.


To each their own with debt reduction. We all do what we feel is the best way for our families. But I agree w/you that having some kind of e-fund in case can't hurt.

iVillage Member
Registered: 04-10-2003
Fri, 01-09-2009 - 8:21pm
My efund came in handy when I had to pay a local handyman to do some work on my vents. He came highly recommended, but since he was an independant contractor, he didn't accept CC's. So I used the efund to pay him. I was building it up until my cat got sick and needed emergency services. I drained it again. I am almost up to $500 so yay!

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Fri, 01-09-2009 - 8:27pm
I finished reading the book download today, and I've decided that Suze was majorly edited for television. What *I think* she meant was that outside of the 8-month eFund, there is no point socking money away when you have debt.

All my best,
Danni
cl-phocid, Debt Support Group



All my best,
Danni

iVillage Member
Registered: 01-06-2009
Fri, 01-09-2009 - 10:18pm

Since my balance is now down to a reasonable amount I am going to put more into saving. In fact I have figured our saving from 1% up to 3% this month.

iVillage Member
Registered: 09-07-2003
Fri, 01-09-2009 - 11:00pm

***


What *I think* she meant was that outside of the 8-month eFund, there is no point socking money away when you have debt.
*******


This sounds like what I have heard from her (based on the PBS specials, i dont have cable to see her show and have not read her books)


Suze would say there is no point in socking money to savings if you have debt as detailed below:


Essentially, your savings are at a certain interest..... (Mine are all in an online savings account currently at 2.6% annually) and your debt, invariably, is at a HIGHER interest (my only debt right now is to my parents, so, 5%...but before bankruptcy my Average interest rate was about 24%).


If I put $500 a month into savings, its going to earn me $1.08 this month.

Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 11-14-2008
Sat, 01-10-2009 - 6:33pm

Yes, my efund is coming along, I hope to have it funded before I have to use it LOL! What I am concerned about is my self control. Once the debt gets down to where I owe say 2000, and I have 2000 in my efund, how will I push past this and wait another 2 months until it is paid instead of dumping the efund on my loan to be debt free? I will let you know when this happens. I am sure I will need support!