Comments on: Oh Those Emergency Funds

By: punkate

punkate — Thu, 25 Mar 2010 00:08:44 +0000

I haven’t had any emergency funds for years. I’ve been relying on the fact I have a Government job which is pretty secure.

Although over the past few weeks I have felt to start an emergency fund: along with my saving up for a house deposit fund and replacing my car before it gets too old fund.

I’m not sure how many years it will take all up to get enough in all 3, but I’m currently trying to set up goals for July next year that I could work towards: i think by then I’ll be able to at least tick off the car and make a dent in the other 2.

I think I just need to make a start, once there’s some momentum I think goal setting will be easier.

Once my promotion paperwork finally gets through & I get the back-pay owed to me: it’ll make planning so much easier!

By: Revanche

Revanche — Tue, 01 Dec 2009 02:48:19 +0000

Oh goodness, I would be a nervous wreck and a half without my emergency fund. It’s been years in the making, with plenty of steps forward and back, but at the time I really truly need the safety cushion, it’s here!

Well worth all that toil and hardship early on trying to make enough to store away, I can hardly remember how miserable those times were and am enjoying the fruits of that labor now.

By: Rosa

Rosa — Fri, 20 Nov 2009 16:36:32 +0000

I think *lots* of people are where Anna is – and shifting those people from using credit to having an emergency fund that gets depleted repeatedly is a big positive step.

By: Frugal Trenches

Frugal Trenches — Thu, 19 Nov 2009 22:38:13 +0000

Amanda, you are too kind!

By: Frugal Trenches

Frugal Trenches — Thu, 19 Nov 2009 22:37:56 +0000

Good luck building it up! I agree, the more you have the more comfortable you feel!

By: Frugal Trenches

Frugal Trenches — Thu, 19 Nov 2009 22:36:17 +0000

Anna, please don’t worry. Loads of people have been where you are, and eventually do get the money together by little tiny bits and pieces. Eventually it adds up to a lot of peace and tranquility!

By: Anna

Anna — Thu, 19 Nov 2009 22:31:14 +0000

I have no emergency fund. There, I admitted it.

I also have had to call Dynorod for my drains to be unblocked tonight at a cost of £175. This will quite simply have to come out of my overdraft.

Every penny seems to be accounted for though at the moment…….

By: Judy Yates

Judy Yates — Thu, 19 Nov 2009 22:02:11 +0000

I guess I’m in a very fortunate position in that we have a freehold house, have (what I consider) a substantial amount of money in the bank and I have a very stable job so I’m very fortunate and I accept that. Having said that though, we are in our late 50′s and my husband doesn’t work so we aren’t rushing to rip the funds out of the bank for any little thing. We are very careful with our money so I’m confident we would be okay even if the worst happens and I lose my job. I do agree though that it’s really important to have access to funds for emergencies and I’d love to see my adult children embrace this idea but unfortunately while I’ve tried to talk to them about the importance of this idea, I don’t think they have got it yet! When they were younger and lived at home we probably weren’t quite as careful with our money and so we most likely didn’t teach them well, it’s only as we have become older that we realise that there may not always be the opportunity to work and earn good money. I’d certainly like to go back in time and do things differently back then, but then again, we are all wise in hindsight!

By: Amanda E.

Amanda E. — Thu, 19 Nov 2009 18:42:21 +0000

I have 4-6 months salary put away and am always adding to it every pay. I also have a day-to-day account which I put extra money in for birthday gifts, car maintenance, school fees, etc. so even with Christmas approaching I don’t feel stressed as I’ve been contributing to my “freedom account” as I call it all throughout the year. Even if an emergency does come up I can borrow money from my freedom account and pay it back over time. I write up an IOU to it LOL. It may sound funny but it really works and I never have to pull out Mr. Visa.

Some people simply don’t get that their spending choices are a HUGE part of their savings situation. Where I work we have been having layoffs now since Jan ’09 so really no ones job is safe. I work with a single mum who is terrified of losing her job (which is understandable) as once she pays all her bills she only has $100 left over. Now saying that she buys starbucks coffee every day, goes out for a bought lunch 2-3 times a week, has already gone on 3 holidays this year and has her daughter in dance which costs $5000 a year. If she had a year or even six months of cutting back she could save thousands.

FT thanks for your blog … it inspires me and I look forward to reading it! ♥

By: bethh

bethh — Thu, 19 Nov 2009 17:56:48 +0000

I’m also single; my job is very stable, and I could get by on unemployment, so I’m not being extremely aggressive about building my emergency fund. Right now I have 2 months’ expenses in it and want to double it. After that I’ll reassess and see if I want more – 6-9 months would feel much more comfortable.