Emergency Fund Question

[skives]

I have an EF that has $1000 in it that I can readily get to that is here in a bank in the town I live. I also have $5,500 in an online savings account.

I recently took my vehicle in for an oil change and they said it needed a new air filter and a front pinion seal fixed. They said It would be under $100 to do.

My question is if I have the money to pay out of pocket should I do that or should it come from my emergency fund? I think out of pocket as long as I have it because I would just pay that money back to my EF eventually.

[GREENBACK]

Did you mean $1000 to fix it? Always pay out of pocket when you can. An emergency is when it costs so much that you can't immediately pay out of pocket. You might save a little maybe if you change the air filter yourself. Very simple to do.

[MonkeyMama]

Out of pocket.

The Efund is to get you out of a bind when you don't have the cash otherwise.

[Aleta]

Out of pocket is always best. Save the E Funds for emergencies. You could borrow from it and pay it back also if you needed more money for an expense that you were short on paying.

[creditcardfree]

I agree, pay that type of expense out of pocket. But, use the emergency funds rather than a credit card if it truly is a need. It is always a good idea to pay your emergency fund back.