An emergency fund is a back up plan for unexpected life events. Trust me when I say that “something” will come up while on your debt journey and without this fund, we tend to go into debt to cover these surprises such as car and home repairs, unexpected medical expenses etc. This fund should be put in place before starting your debt free journey. Even if you have to make minimum payments toward debt and use the extra money to build your fund first.

A sale does not qualify as an emergency. Use your fund wisely and remember to replenish it

Don’t be fooled! Things that you have forgotten like annual taxes, license payments, birthday party gifts are NOT emergencies and should be planned in your regular budget trackers.

How do you know what is a good amount to start with? Dave Ramsey recommends a fund of $1000 dollars but due to our family size of (6) we started with a fund of $3000. This is a decision you should make based on your family size and lifestyle.

Emergency Fund

0 thoughts on “Emergency Fund

  • April 12, 2019 at 1:41 am
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    What is your monthly contribution to the emergency fund?

    Reply
    • April 12, 2019 at 1:46 am
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      Hi Liz. We transferred the full amount from our savings. You can decide what monthly amount is comfortable for you until you reach your goal.

      Reply

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