As much as I love to lament my current financial situation, and as much as I like to bemoan my station in life as a lowly 20-something in tons of debt, I know that I’m incredibly lucky. I have a university degree, a stable job in my field of choice, and thanks to my careful financial habits, I’m probably never going to be in truly dire financial straits. I’ve always had family members that, if I needed them to, could help me out in times of crisis. I’ve never been so completely broke that I had to actually worry about keeping a roof over my head, and for that I’m very thankful.
Throughout University I used to rely on family members for this piece of mind, these days I rely on my emergency fund.
My Emergency Fund has Value
My emergency fund isn’t much. It doesn’t have 6 months living expenses in it, it’s not a magnificent five figure beast of security. In fact, at the moment, it has just under two grand in it. That’s a relatively small amount, especially considering what most experts would suggest is ideal.
But it’s there. If I get a $600 car repair bill, it’s there. If I get sick and need to take time off work but I’m out of sick days, it’s there. If something happened to Molly and she needed to go to the vet, my emergency fund would be there to make sure she gets the treatment she needs.
Eventually, once I’m out of debt, I’d love to grow my emergency fund to cover six months of evasive action living expenses. Right now though, I have better uses for my hard earned cash than to have it languish in a low interest savings account. That said, I’ll always keep an emergency fund, because it’s what stands between me and not having enough cash at the end of the month.
So far in my short life, I’ve never been in a situation where I truly didn’t have enough money to make ends meet. Sure I’ve had some lean times, but I’ve always managed to scrape through without having to be concerned about getting enough to eat, or keeping the lights on. I love my emergency fund because it ensures that I won’t have to worry about those things any time soon.
As I mentioned in the title, this post is part of a give away series. Entry for your chance to win $100 is simple, just fill out the requested parts in the Rafflecopter widget below.
Do you have an emergency fund? Has it ever saved you from lean times? How big is it? I want to know!