Any good financial advisor or planner will always tell you to plan for emergencies. You should have an emergency fund stashed away to take care of any unexpected events in your life that require some financial attention. Dave Ramsey recommends at least $1,000 in some type of account with easy access, such as a savings account or money market account. After my experiences this monthÂ I completely understand why.
The new year started off with paying the bills for all the Christmas shopping we did the month before. That was expected, but probably just a bit more than planned. We were then greeted with a dead battery on our car for another $80. After taking the car to get the oil changed a few days later I was told we need front breaks VERY soon because they were less than 5% left, another $180 unexpected. Not so bad, right?
About 2 months ago we decided to sell our dining room furniture on Craigslist because it was furniture we purchased when we were first married and wasn’t the best quality. Some of the chair legs were getting real shaky and the buffet was very scratched. We sold the furniture quickly and put the money in the bank to start shopping for new furniture. We found a great deal on some new furniture just before the new year. Sure, the money we made selling the old wasn’t enough to cover the new but we had saved enough to pay the extra. Still not so bad, right?
Well a couple of days ago while sitting in the kitchen we hear a gush of running water from the front of our house. Rushing to see what was happening we were greeted with water pouring from the light fixture in the entry way. I ran upstairs to see what was happening and sure enough the water was pouring from the washing machine. The whole upstairs carped was soaked and water was running down through the walls to the first floor and even into the basement. I think everything will be covered by the insurance, but it’s still another unexpected $500 expence.
Now, to make matters worse remember what caused the problem? Yes, the washing machine needs to be replaced too. Another $400 of unexpected expenses. On the positive side we have the money to pay for all the unexpected expenses but it sure hurts. The lesson here isÂ I’m a first hand believer in having an emergency fund. Now all I have to do is rebuild one…..