Emergencies and Emergency Funds

iVillage Member
Registered: 08-24-2007
Emergencies and Emergency Funds
13
Wed, 10-28-2009 - 7:46am

Seems like a lot of people on the board are having dental emergencies!

Kate


empty purse

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iVillage Member
Registered: 04-10-2003
Wed, 10-28-2009 - 8:09am

I only have one real emergency fund (okay two, I have about $500 in mutual funds that I could access if I really really wanted to, but this is my long term spending account --> downpayments or weddings!)


I have what Gail calls planned spending accounts. I know that Vet bills and copays will happen, so I take money out of every paycheck and put them


Bex -

iVillage Member
Registered: 03-27-2005
Wed, 10-28-2009 - 8:46am

I have a general emergency fund and a sinking funds account.

The sinking funds account has money in it to cover things like routine vet bills, pet medications, car registrations, oil changes, inspection stickers, estimated tax payments and expected co-payments (routine medical, routine dental, Dental fillings,specialists, parking and gas to get to specialists etc..),school related expenses (supplies, course fees, trips, competition and judge fees etc..).

The emergency fund is there to cover other things that come up, that can't wait for us to save up the cash for such as car or home repairs that can't wait.

Things like Christmas, birthdays etc.. are always there and we plan for those expenses separately.

stacy

iVillage Member
Registered: 07-05-2006
Wed, 10-28-2009 - 9:50am
I have one Emergency Fund that I try to keep at $1000 dollars at the moment. I figure that can cover any true emergency like a car breaking down or a new water heater, medical emergency etc. Then I have a home repair fund (we need some repairs done to our house, like new carpet and some tile put in). That's all I have so far, but of course I just started this whole 'saving for an emergency thing'.

iVillage Member
Registered: 06-03-2006
Wed, 10-28-2009 - 11:28am
I only have 1 emergency fund of a little over $1,000 (and growing). This I will use for any emergency that comes up where I don't have the cash to otherwise cover it without destroying my budget. Everything else that comes up like vet bill, gifts, etc. I will just work into the budget if possible.
iVillage Member
Registered: 11-14-2008
Wed, 10-28-2009 - 1:24pm

I have a store emergency fund. At least that is what I have been calling it for 7 months now. I don't want to use it for an emergency though........LOL. I am going to try everything I can this winter to not go over on my credit line (including paying a few large bills slowly) so I don't have to use it. I want to add to my cash and call it my kids education fund. I am realizing the other goals in my life are important too and instead of throwing money at my business I should play the wait and see, leverage, and risk game. In other words, I am pretending the efund is not there like it wasn't last year and reaching the Kids education fund goal sooner than later is a big motivator.

My bf and I don't really have an emergency fund but seem to be continually saving for something so there is always money there in our savings. We both have good dental insurance and we always put money into our car maintenance fund so that seems to work for us.


iVillage Member
Registered: 03-27-2005
Wed, 10-28-2009 - 1:42pm

I should note that I have 3 1/2 months worth of living expenses plus sinking fund contributions in my emergency fund. 4 months if I don't include the sinking fund contributions.

stacy

iVillage Member
Registered: 10-28-2009
Wed, 10-28-2009 - 3:21pm

I have been wondering this exact question for the past few months. I purchased my first home in August. After reading posts here over the years, if there is one thing I learned about debt, budgeting and personal finance, it's to be prepared and expect the unexpected!


all the experts also say to have 6 months expenses saved in an emergency fund. But, I have often wondered, once you've got all this money saved, does that same account also function as the home repair fund, the car maintenance fund, etc etc? It seems like a lot of money to save (not a bad thing, just very difficult to do) for each possible occurence.


What I decided to do was to save from each pay period. I have readily available savings, the smaller of my accounts. I am also building a longterm savings (and harder to access) for those once in a while happenings that can really mess up finances (once a year car insurance for example, $1200) My hope is that over time, a long time, I will get to the 6 month emergency fund.

iVillage Member
Registered: 01-27-2009
Sat, 10-31-2009 - 6:48am

I would like to have more, but right now my emergency funds are all employment related:

(1) Sick leave fund: since I do not have paid sick leave, every day off is a hit in the wallet. To try to lessen that, I save my "vacation pay" as a sick leave fund. Would be nice if I could save it for actual time off or could put more money away to do both, but I don't have the confidence to put 8% of my cheque away. Instead, I have a rule that I can only do job search-related activities for a max of 50 hours a week and for myself to take personal time every night.

(2) "In-between Contracts" fund: Ideally, I'd love to split my paycheque 50/50 between me and this fund. Not gonna happen (also have times I could pay off my CC debt with this - not student loan - but I don't risk that). Instead, I try to "pay myself" my lowest wage and save everything above in this account, when I get hired for more. In reality...

(3) General emergency fund: I have it or, more accurately, I have an account for it. Before I went temp, there was even money in it. Now, not so much as I focus too much time and effort on the other funds. In an absolute emergency, I steal from my "in-between contracts" fund or charge to a CC I keep empty for such a purpose (giving me a month to work out what I can from my budget).

Someone mentioned their retirement fund as an emergency fund. I do have one but I feel less secure contributing now that employment is so unstable. Theoretically, I guess I could pull from it in an absolute emergency but it takes weeks and the penalties are so high that I rarely do.

Would it help to discuss emergency fund wishlists? Of course, that could get long...

iVillage Member
Registered: 04-12-2007
Sat, 10-31-2009 - 8:48am

Good post, Kate!


I currently have

iVillage Member
Registered: 06-02-2009
Sat, 10-31-2009 - 11:52pm

That sounds like you are doing really good at this.

Lila

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