Back in the not so distant past when debt ruled our life and we managed to spend more than we made, emergencies seemed to pop up all the time. It seemed like we were always dealing with car repairs, hospital bills, vet bills, and a host of other things that seemed to shock us and send our financial dreams crashing to the ground! Our savings account balance was low (who am I kidding, we didn't even have a savings account) and our stress level was sky high!
When we started following Dave Ramsey's Plan
, Baby Step One was to put $1000 in the bank as an emergency fund. Within a week of saving $1000, our small town flooded and our basement flooded right along with it. Our freezer managed to float from one side of the basement to the other. Our furnace was ruined. Nearly everything in the basement was destroyed. And although we had insurance, we also had a deductible which we paid with our emergency fund.
And so, we began saving again. And soon, we had another $1000 in the bank. Over the next few months, we managed to lower our expenses tremendously and we also looked for ways to make extra money. The result was that we were able to start aggressively paying off our debt.
We also found that when we budgeted for things like car repairs and maintenance and medical expenses, the shock of the bills was less overwhelming and most of the time we were able to pay for them without dipping into our emergency fund. And the few times we did need to use some of our emergency fund, we found that we weren't nearly as stressed about money.
A few weeks ago, after 6 months of health problems, I went to visit my doctor. I don't blog about it much, but I have Systemic Lupus and although I usually feel pretty lousy, these past 6 months have taken the cake. I've had crazy hair loss, insane weight gain, and severe joint pain and to top if off, I was constantly chilled…like soak-into-your-bones freezing!
My doctor gave me a prescription and told told he wasn't sure if the drugs would help or not, but that either way in 6 weeks when our weather is significantly warmer I'd probably feel a whole lot better. He also mentioned that a few weeks in Hawaii would do me a world of good. And although a trip to Hawaii was a little unpractical, a trip to Florida wasn't totally out of the question.
My hubby and I talked about it. Then I talked to my mom and dad about helping my hubby with the kids while I was gone and then I bought a ticket….for 36 hours later. Within 36 hours of my decision to go south, I was on a flight. I was able to get decent airfare (although it wasn't super cheap), my aunt graciously and generously allowed me to soak up the sun in her Florida home, and my husband and family encouraged me to take some time for my health. And I couldn't have done it without the comfort of an emergency fund.
Since the month is not quite over, I'm not sure how much of this trip will come out of our emergency fund. I'm hoping that we'll be able to scrimp and save in other areas without dipping into our emergency fund at all. But even if we do, I can do it without guilt, knowing that we have money set aside for unforeseen emergencies.
As I type this, I'm flying back home {gotta love that in-flight wifi} and I'm actually feeling human. This trip has done me a world of good. Now that I know that sunshine and warm weather may become a winter necessity (at least in short doses throughout the winter), we will be working on figuring out how to save the money in advance so that we're prepared for next year!
So tell me…Do you have an emergency fund? Is it just me or does an emergency fund make life seem a little less stressful?
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