Dipping into savings when necessary- are you hesitant?

[Thriftina]

There have been emergencies where I had to go into my savings account and purchase an item. I absolutely hated this, even though that was the point of me saving money- for emergencies. Anyone else this way?

[wincrasher]

It's harder to spend money that you've struggled to save. Much easier to put it on plastic because it isn't "real"

[Seeker]

Originally Posted by Thriftina

There have been emergencies where I had to go into my savings account and purchase an item. I absolutely hated this, even though that was the point of me saving money- for emergencies. Anyone else this way?

This is natural. I would except that the vast majority of people feel this.

We've saved it to use for an emergency. An emergency is a unplanned event.... usually negative and costly. We then have to carry that forward and re-build the EF. Quite natural to not want to spend that money.

[kork13]

I used to be that way, but over the last number of months I've become much less "afraid" (if you will) to use my savings. I've realized (reminded myself?) that the savings are there to be used as needed at some future time. Example... I'm doing my taxes later this month, and I know that I will be owing a few hundred dollars. I don't keep the spare money in my checking account to pay what I expect to owe, so my tax bill will be coming from my savings. Afterwards, I'll be building it back up, and then some. Simple as that.

BTW, that "realization" of mine (fairly recent) made me much less stressed as to my finances. Not that I'm going to go blow my savings, but just understanding that it's there to be used as needed.

[GREENBACK]

I recently spent a good size chunck of my savings on damages to the home but I knew that's what it was for and was just glad to have it in the first place. It's nice to watch savings grow but you're saving for a reason as I see it.

[mommyof4]

Originally Posted by Thriftina

There have been emergencies where I had to go into my savings account and purchase an item. I absolutely hated this, even though that was the point of me saving money- for emergencies. Anyone else this way?

Yes, it does bother me, but then I'm greatful that I have a savings account to use, and not put it on plastic.

[Seeker]

Originally Posted by kork13

I used to be that way, but over the last number of months I've become much less "afraid" (if you will) to use my savings. I've realized (reminded myself?) that the savings are there to be used as needed at some future time. Example... I'm doing my taxes later this month, and I know that I will be owing a few hundred dollars. I don't keep the spare money in my checking account to pay what I expect to owe, so my tax bill will be coming from my savings. Afterwards, I'll be building it back up, and then some. Simple as that.

BTW, that "realization" of mine (fairly recent) made me much less stressed as to my finances. Not that I'm going to go blow my savings, but just understanding that it's there to be used as needed.

Ah, but Kork13, this is PLANNED. You're not using an "emergency fund" for a planned expense are you?

If it's a true "emergency" --- an unexpected need -- then you'd probably feel differently.

I agree, I do not hesitate with these normal expected hurdles to my great financial plan but the unexpected hurdles are a different story.

[maat55]

Anything I take out of my EF would have to be replaced with future investments, so I do anything I have to to not touch the EF or car fund.

Dispite this year and last being my worst years, I continue to add to both funds. It would take a big emergency to touch my EF.

[kork13]

Originally Posted by Seeker

Ah, but Kork13, this is PLANNED. You're not using an "emergency fund" for a planned expense are you?

haha ummm... weeeelllllll....

I initially expected it to be somewhere in the $200-400 range... Running some guesstimate numbers, I'm estimating it to actually be closer to $500-900 (not totally sure). So this one was not entirely planned.... I likely will be tapping my EF (only slightly... less than 10%), just as a safety measure, so that I don't run my checking down too far and risk overdrafting.

Originally Posted by Seeker

If it's a true "emergency" --- an unexpected need -- then you'd probably feel differently.

I agree, I do not hesitate with these normal expected hurdles to my great financial plan but the unexpected hurdles are a different story.

Actually, I would say it's the other way around, or at least for me.... In most all cases, I try to spend entirely from my dynamic funds (checking) that come and go, without touching my savings. However, if/when something totally unexpected (or unexpectedly costly... ) comes up, I would have ZERO hesitation to use my savings, with the realization that the money is there for just such a situation.

I guess I just don't hold the EF completely on a pedestal of "no-touchie"... Yes, it needs to be there, but if it needs to be used, it needs to be used. Better to tap the EF than to go into debt, over-draw any other accounts, or anything like that....

[Pitman]

I always try to leave a little "breathing room" in my everyday account, so I won't have to touch my savings. And if I want to purchase something big, or pay off a loan, I won't contribute to my savings unless whatever situation I'm in is taking car of. I've always had this mentality that once it hits my savings account, I'm not allowed to touch it.