4 Reasons to Have An Emergency Fund (#3)

 #3 Emergency Fund                                        
He who fails to plan, plans to fail. Winston Churchill

Source: google.co.uk via Cherie on Pinterest

If you have money, you don’t have to borrow money. Shocker, right? The point is to stay out of debt.   One of the first (and best) strategies we employed at the onset of our Debt Slaying Journey (DSJ) was to save $1,000.00. $1,000.00 provided quite the cushion. If you have a cushion, you don’t need the Dragon (may it not rest in peace) here’s a few ways it helped us:

1.  Emergencies Happen. We had expensive car repairs. We had to replace the royal water heater. The dishwasher and washer and dryer both needed fixed.  You’re going to have emergencies.  A credit card is not an emergency fund – it is a debt instrument.  Don’t rely on a tool of enslavement to bail you out of a tough financial situation, it will only lead to another one.  

2. Unexpected Medical Costs are . . . Unexpected. Princess Eldest needed braces (we confirmed with a second opinion).  Princess Youngest needed tubes in her ears (after 7 or so different antibiotics).  Technically, these weren’t emergencies.  Princess Eldest could have had major surgery someday and Princess Youngest (and the Queen) could have continued not to sleep.  Glad we had the emergency fund because we had options at our disposal.

3. The Dragon Wants you to Fail.    Even in what we thought was the last 35 or so days before we would be debt free, the Dragon (may it rot in a fiery grave) made its last stand. Both cars limped into the shop with expensive repairs.  The Dragon will attack.  Partly because of the emergency fund, instead of there being 35 days left to pay off the final debt when our cars went into the shop – it only took about a week longer to drop the deathblow on the Dragon.

4 It Keeps You From Borrowing Money.  While it’s admittedly speculative, we probably would have went further in debt without an emergency fund. An emergency fund is a confidence builder and an emotional first step in a long battle with the Dragon. We depleted ours on several occasions and subsequently refilled it as soon as we could.   The good news is that as you get deeper into your own DSJ, you’ll be able to cash flow emergencies.

     Do you have an emergency fund? If so, what’s the biggest way it’s helped you?

     READ THIS: The Principle of the Path by Andy Stanley
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  • http://www.blogger.com/profile/08841983203637387137 Don Current

    Well, it was just a minor little thing, but my employer of 20 years went bankrupt and booted me out the door without so much as a thank you. Having a 6 month emergency fund was LIFE CHANGING for us.

  • http://www.blogger.com/profile/08495342786740234364 King of Free

    wow. take note of Sir Don, Lords & Ladies. take note.

  • http://www.blogger.com/profile/15128164336218369734 Brady

    We do have an emergency fund, it’s hard not to want to spend it all the time though. It should be about 3 or so months but I constantly want to spend…

  • http://www.blogger.com/profile/08495342786740234364 King of Free

    the emergency fund takes some discipline, Sir Brady. saying no to something you love now so later you can say yes to something you love more.