At the end of the mowing season in the Fall, our lawnmower died. In the past few weeks both our washing machine and dishwasher have died and our car needed $500 in repairs. Yesterday when Mark and I rolled out of bed we found that our bed sheets were so threadbare that they were tearing!
Goodness! When it rains it pours!
While all of that is a lot to deal with in a short period of time, I’m grateful that we have a “rainy day” fund to deal with the “expected but unexpected” expenses. Dave Ramsey calls it the “emergency fund.” We used to call it “the credit card,” and that got us in lots of trouble.
An emergency fund is a security blanket for your finances. It helps you plan for the what-you-know-will-happen-but-you-don’t-know-when-it-will-happen things in life. Appliances wear out. Cars need repair. Houses need maintenance. These are the realities of life.
Tuck away a little bit of money with each paycheck and you’re on your way to making sure you have enough money stashed for the realities of life.
Start somewhere. If you’re not currently saving for an emergencies, start with a set amount each paycheck. Even $20 or $30 a paycheck can get you started in the right direction!
Automate your deposits. If you can have the money pulled directly out of your paycheck and put into your savings account…do it! If you can’t have it taken directly out of your paycheck, set up an automatic online transfer from your checking to savings account each time you get paid.
Increase when possible. If you’re putting away $50 a paycheck and you’ve got a little extra money at the end of the month, increase your emergency fund by $10-$20. It may not seem like a lot, but those regular deposits add up!
What about you? What strategies do you use to save money for the emergencies of life?