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Originally Posted by Aleta
An emergensy fund is just that , an emergency. When you start your budget, you'll be allocating money for car maintenance, house maintenance, household supplies, etc. When you have used that money up and it is truly an emergency, then you can tap your emergency fund. Your EF fund is not just a fund sitting there waiting for anything to come along. You should have been budgeting money for these expenses all along is which why you got into credit card debt to begin with.
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Right. That's why I have a separate MM acct where I hold funds for things like car insurance, annual car tag, etc. And I budget for those things all throughout the year. I also add extra money to that account for those minor emergencies like unexpected car or home repairs, etc.
I keep my EF, which is NOT fully funded unfortunately but I am working on it, in a completely different bank. That one is for disasters.