Comments on: Emergency Fund http://www.lighteningonline.com/2008/04/03/emergency-fund/ Simple Living... Frugality... Gardening... Cooking From Scratch... Knifty Knitter Projects.. And More. Mon, 13 Oct 2008 05:11:45 +0000 http://wordpress.org/?v=2.3.3 By: Eco Friendly Tara http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-5151 Eco Friendly Tara Sun, 20 Apr 2008 05:00:40 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-5151 This is an excellent subject. For the last 3 years my hubby and I take all of our change and throw it in a bucket. At the end of the month we deposit it into our savings account. It is shocking how much all those dimes and pennies add up. We normally deposit $100-$120 just in change every month! This is an excellent subject.

For the last 3 years my hubby and I take all of our change and throw it in a bucket. At the end of the month we deposit it into our savings account. It is shocking how much all those dimes and pennies add up. We normally deposit $100-$120 just in change every month!

]]> By: Cat http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4810 Cat Sat, 05 Apr 2008 09:43:07 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4810 I should mention that I now count that $50 into my weekly budget since I'm working so litte - Peter's covering all the househould stuff but I still have personal bills and savings goals to meet! I should mention that I now count that $50 into my weekly budget since I’m working so litte - Peter’s covering all the househould stuff but I still have personal bills and savings goals to meet!

]]> By: Cat http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4809 Cat Sat, 05 Apr 2008 09:41:14 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4809 I have had $50 taken out of my weekly pay and put into a high-interest net account since forever. It's actually held by the same bank as my main account so it's only takes a few seconds to transfer money rather than the few days it takes with ING, etc which I think is important if there's ever a real emergency. When I worked full-time for a few months last year/beginning of this year I completely forgot to account for that $50 in my weekly budget and by the time I realised I'd saved several hundreds of dollars. I think by the time I went back to one day a week of work I had around $1000 saved. It's probably a little bit more than that now, I don't really know but I do know if something dire happens I at least have that $1000 sitting there. It's a great peace of mind isn't it. I have had $50 taken out of my weekly pay and put into a high-interest net account since forever. It’s actually held by the same bank as my main account so it’s only takes a few seconds to transfer money rather than the few days it takes with ING, etc which I think is important if there’s ever a real emergency.

When I worked full-time for a few months last year/beginning of this year I completely forgot to account for that $50 in my weekly budget and by the time I realised I’d saved several hundreds of dollars. I think by the time I went back to one day a week of work I had around $1000 saved. It’s probably a little bit more than that now, I don’t really know but I do know if something dire happens I at least have that $1000 sitting there. It’s a great peace of mind isn’t it.

]]> By: lightening http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4792 lightening Fri, 04 Apr 2008 04:54:16 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4792 Kelly - LOL about the scrapbooking. Sadly some spending somewhere generally needs to slow down in order to establish an emergency fund. Perhaps you could go halves? Half toward scrapbooking and half toward the emergency fund. Remembering that something is always better than nothing. :) Stuffy - yes, working on months salary is a good idea. What I'm talking about here though is a more basic emergency fund rather than replacing a salary. Most people's emergencies cost similar money even if their living expenses differ. If you look at Dave Ramsey's babysteps to financial freedom he talks about a more established emergency fund being 3-6 months salary. We've been working on that but it takes a while. Especially during a drought. LOL. Libby - I hope you can work things out with the budget. It sounds like you've been through some trying times. {{{HUGS}}} Hang in there. Lynette - private highschooling? Ouch! :) Yes, money can sometimes be a rather taboo subject although I think we're getting better about changing that. River - yes, those change tins can add up amazingly quickly!!! I have one I use each year for a few treats around Christmas time and to help us through the summer school holidays. Kez - yes I seem to remember you were a great cheer squad for me when I was trying to build ours up. :) Alice - Tax Refunds can be a great way of socking away an emergency fund. Jenn - It's amazing how you don't miss what you don't have isn't it. I bet that $25 could easily have been spent without you realising it if you hadn't removed it that way too. Bobbie - I think it's hard at first but you can get into new habits financially. I know because we did it. :) Widdle Shamrock - ooh!!! I've never been a super hero before! Why, thank you. :) Sounds like you're doing well. Kelli - paying extra off the mortgage is a great way if you can redraw it (and have discipline). Kelly - LOL about the scrapbooking. Sadly some spending somewhere generally needs to slow down in order to establish an emergency fund. Perhaps you could go halves? Half toward scrapbooking and half toward the emergency fund. Remembering that something is always better than nothing. :)

Stuffy - yes, working on months salary is a good idea. What I’m talking about here though is a more basic emergency fund rather than replacing a salary. Most people’s emergencies cost similar money even if their living expenses differ. If you look at Dave Ramsey’s babysteps to financial freedom he talks about a more established emergency fund being 3-6 months salary. We’ve been working on that but it takes a while. Especially during a drought. LOL.

Libby - I hope you can work things out with the budget. It sounds like you’ve been through some trying times. {{{HUGS}}} Hang in there.

Lynette - private highschooling? Ouch! :) Yes, money can sometimes be a rather taboo subject although I think we’re getting better about changing that.

River - yes, those change tins can add up amazingly quickly!!! I have one I use each year for a few treats around Christmas time and to help us through the summer school holidays.

Kez - yes I seem to remember you were a great cheer squad for me when I was trying to build ours up. :)

Alice - Tax Refunds can be a great way of socking away an emergency fund.

Jenn - It’s amazing how you don’t miss what you don’t have isn’t it. I bet that $25 could easily have been spent without you realising it if you hadn’t removed it that way too.

Bobbie - I think it’s hard at first but you can get into new habits financially. I know because we did it. :)

Widdle Shamrock - ooh!!! I’ve never been a super hero before! Why, thank you. :) Sounds like you’re doing well.

Kelli - paying extra off the mortgage is a great way if you can redraw it (and have discipline).

]]> By: Kelli http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4786 Kelli Thu, 03 Apr 2008 22:12:56 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4786 I use my mortgage to keep my emergency fund. I pay extra off the mortgage every month, at the moment it is just over $100 per month, and get excited by how much it is growing. It is just a bit over $5,000 at the moment. I can access it whenever I want but it costs $50 to draw the money down. This is a real disincentive to touching it for frivilous purposes. When I had to replace my lounge, I "borrowed" it from my mortgage payments in advance & then repaid it as quickly as I could, just as if I had borrowed from a finance company (and yes, I know it is from a bank but I have saved a fair bit of interest by keeping it there rather than in a lower interest earning account). It is nice to know that if the fridge stops working I can immediately replace it, or if the kids need to have some surgery or similar it can happen. I also have a joint savings account with DBF which we both put about $40 per fortnight into. We also both use this as an emergency fund - I borrowed from it to get my car serviced when it cost substantially more than I expected. And once again I paid this back asap. This is heading up towards $1,000 at the moment, but will probably be used in OCtober when we head to the Flinders Ranges for a couple of weeks. Again it is nice to know it is there if needed. I love the idea of emergency funds... I use my mortgage to keep my emergency fund. I pay extra off the mortgage every month, at the moment it is just over $100 per month, and get excited by how much it is growing. It is just a bit over $5,000 at the moment. I can access it whenever I want but it costs $50 to draw the money down. This is a real disincentive to touching it for frivilous purposes.

When I had to replace my lounge, I “borrowed” it from my mortgage payments in advance & then repaid it as quickly as I could, just as if I had borrowed from a finance company (and yes, I know it is from a bank but I have saved a fair bit of interest by keeping it there rather than in a lower interest earning account). It is nice to know that if the fridge stops working I can immediately replace it, or if the kids need to have some surgery or similar it can happen.

I also have a joint savings account with DBF which we both put about $40 per fortnight into. We also both use this as an emergency fund - I borrowed from it to get my car serviced when it cost substantially more than I expected. And once again I paid this back asap. This is heading up towards $1,000 at the moment, but will probably be used in OCtober when we head to the Flinders Ranges for a couple of weeks. Again it is nice to know it is there if needed.

I love the idea of emergency funds…

]]> By: Widdle Shamrock http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4785 Widdle Shamrock Thu, 03 Apr 2008 19:49:22 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4785 Great thinking Batman !!!!! We have a fund but it isn't at the $1000 mark yet. Great thinking Batman !!!!!

We have a fund but it isn’t at the $1000 mark yet.

]]> By: Bobbie http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4784 Bobbie Thu, 03 Apr 2008 19:21:00 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4784 We are terrible when it comes to saving back money. I don't know why we just don't do it. I know we should. I remember several years back though when we did just about pay for a small vacation for the family with change we saved. We would come home every day and put any change we had into a container and not spend it for anything. I also got to the point of not wanting to spend change from my billfold during the day. I would bread a bill instead of using change. So I know it does work. We are terrible when it comes to saving back money. I don’t know why we just don’t do it. I know we should. I remember several years back though when we did just about pay for a small vacation for the family with change we saved. We would come home every day and put any change we had into a container and not spend it for anything. I also got to the point of not wanting to spend change from my billfold during the day. I would bread a bill instead of using change. So I know it does work.

]]> By: Jenn http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4781 Jenn Thu, 03 Apr 2008 14:29:05 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4781 I totally agree that having a bit put away in savings for a rainy day is so important. We started small, just 25.00 automatically taken from hubby's paycheck each two weeks, but it has really snowballed! Now we put away extra money when we have it in addition to some taken from every paycheck. It's so gratifying to watch the account grow and it's so nice to know it's there if we need it. I totally agree that having a bit put away in savings for a rainy day is so important. We started small, just 25.00 automatically taken from hubby’s paycheck each two weeks, but it has really snowballed! Now we put away extra money when we have it in addition to some taken from every paycheck. It’s so gratifying to watch the account grow and it’s so nice to know it’s there if we need it.

]]> By: alice http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4778 alice Thu, 03 Apr 2008 11:25:29 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4778 I am so lucky that I had a tax refund come through in September last year, and tucked it away in an unused bank account. To fly thousands of kilometers for dad's funeral cost us a fortune on such short notice. Plus the hire of the car, living expenses, etc while we are here. Your plan is a good one and something I am going to focus on when I get home. I am so lucky that I had a tax refund come through in September last year, and tucked it away in an unused bank account. To fly thousands of kilometers for dad’s funeral cost us a fortune on such short notice. Plus the hire of the car, living expenses, etc while we are here. Your plan is a good one and something I am going to focus on when I get home.

]]> By: Kez http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4777 Kez Thu, 03 Apr 2008 09:53:37 +0000 http://www.lighteningonline.com/2008/04/03/emergency-fund/#comment-4777 Great post! That was the first thing I did when I first started following Dave Ramsey's advice - it's been a godsend at times. It gives you such comfort when it's there, and you feel very insecure when it's not! Great post! That was the first thing I did when I first started following Dave Ramsey’s advice - it’s been a godsend at times. It gives you such comfort when it’s there, and you feel very insecure when it’s not!

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