Grieving the loss of your emergency fund

[HousingCounselor]

Ever been sad or depressed that your emergency fund took a deep blow or was wiped out due to an unforeseen situation?

Even though you save for emergencies, sometimes you never expect that you would actually need to use it. If I go through a situation where I have to dip into my fund, I immediately search my budget to see where, if any, can I cut back so that I can rebuild as quickly as possible and feel ok again. For me, I get caught up in what I've sacrificed or "luxuries" (like Dairy Queen) I went without to put that money away.

Of course it's always worse when you don't have any money in a fund period. But...You know!

[GREENBACK]

I tend to keep a larger EF than is generally recommended. It doesn't earn much but when something comes up, I have the funds available to handle it without wiping out my account. I feel a few extra bucks or a few thousand won't crush you if it isn't otherwise invested or going to something else.

[elessar78]

I just went through my EF-busting moments the last few years. I had a healthy EF in 5 figures and each year for the last 4 years we've had some "event" that necessitated us to dip into the EF. It's frustrating, as you gain momentum building it back up something else happens.

[bjl584]

I've written some big checks for thing in my time, but I was always thankful that I had the money and wasn't forced to take on debt. Building my cash reserves back up took time, but I would rather pay myself each month as opposed to a lender.

[greenskeeper]

Grieving the loss of your emergency fund

imagine the grieving if you didn't have an EF? That's the whole idea....yeah it's a bummer to have to dip into those savings you've built up, but you don't have to add debt and can build it back up in no time flat.

[snshijuptr]

One way I deal with this is by not allocating extra money when I think that there is going to be an uncertain period in our life such as summer time (DH is a teacher) and before major life events (wedding, births). I also save for most periodic expenses especially non-oil change car maintenance specifically tires.

[HousingCounselor]

Originally Posted by greenskeeper

imagine the grieving if you didn't have an EF? That's the whole idea....yeah it's a bummer to have to dip into those savings you've built up, but you don't have to add debt and can build it back up in no time flat.

It's funny that you mention that. That's what I tell my clients all of the time. Whenever I reach a period where I think I may not have an emergency. I start thinking long term. Wishful thinking rather. Like what if I save for an emergency and it never happens or at least to the degree that It wipes out my fund. Of course in life there are always emergencies and I'm always grateful that God gave me the sense to be mindful about putting something away.

Sometimes when I reach a certain goal in my savings I start to feel a sense of accomplishment and I breathe and sleep a little easier.

[Fizgig]

Oh yeah, it's upsetting when I have to dip into my EF. It almost makes me feel like a failure, which is ridiculous, because I did the RIGHT thing by stashing money away for those inevitable moments. And yes, I also get super stingy with my lifestyle afterwards so I can fill it back up as soon as possible.

To assuage the sting a little, I also keep my EF overfunded (at about 14 months of expenses), so that when I have to use some of it, there's probable still a lot in there unless something really catastrophic happens.

[snafu]

Nope, the emergency fund is there for emergencies...events I didn't foresee. My brother died unexpectedly last year and it was v/expensive to get an immediate flight. Initially charged the flight and auto rental. By the time the bill was due I scooped some $$ from regular funds by cutting back food, fun, transportation and remaining from Emergency. That sum was replenished bit-by-bit without difficulty.

It's ok to put unforeseen costs on a CC so long as the balance is paid in full by it's due date.

[thefrugallery]

I agree, it's rough to invade the EF, but it would be even worse if you didn't have one! Just think of what it would cost you in interest if you had to put the expenses on a credit card!

[papa_squat]

Originally Posted by HousingCounselor

Ever been sad or depressed that your emergency fund took a deep blow or was wiped out due to an unforeseen situation?

Even though you save for emergencies, sometimes you never expect that you would actually need to use it. If I go through a situation where I have to dip into my fund, I immediately search my budget to see where, if any, can I cut back so that I can rebuild as quickly as possible and feel ok again. For me, I get caught up in what I've sacrificed or "luxuries" (like Dairy Queen) I went without to put that money away.

Of course it's always worse when you don't have any money in a fund period. But...You know!

I can totally relate to this. This has been a year of big expenses for us (our wedding & honeymoon and buying a car shortly after) and we had some unexpected expenses thrown in (the old car dying, grandfather died and I had to pay for overpriced flight, gravel driveway and rock walls washed out after flooding and we're having to rebuild everything). Our emergency fund is nearly wiped out, but we're glad we have it so we didn't have to pull out any of our investments for a loss. Now we're going to be as cheap as we can stomach it in 2012!

[Like2Plan]

I ran into something similar with DS's college fund. We had been saving 18 years for his college and it just felt wrong to be pulling the money out when he went to college. But, it was exactly why we had saved the money. It took a while to adjust to spending instead of saving.

[Shaabenanizer]

I'm facing that right. My autistic sister (I'm her legal guardian) needs some major dental work. I anticipated this and was working on saving $$$ for the next 3 years, only to learn yesterday that she'll likely need the work sooner, like in 2012. I tell myself I was going to spend the money on her anyway, be it 2015 or in 2012 it doesn't really make a difference. Still, it hurts that my EF may take a hit now even though I will technically be in the same place three or four years from now.

[maat55]

I consider my EF sacred. I have went out of my way to now touch it in emergencies. We did borrow from it once for a car purchase, but I paid it back very quickly and decided to never do that again.

Honestly, my main concern with touching the EF is that I have to stop investing to rebuild it. My primary concern is not stopping my Roth contributions. At least borrowing for the car allowed for the car savings to pay it back.