Hurray for the Emergency Fund!

Many people I know don’t have one of these.  $1000 in a bank account that isn’t easily accessible, that you can go to if needed.  I do.  And I’m glad.

I started mine last summer because I had two fairly large chunks of money come to me – retro active pay from our wage contract, and a “medical” benefit that came into existence.  I didn’t use it for medicals – I used it for stress relief!

Yesterday I came to the conclusion that I needed to buy myself a video recorder.  Nothing fancy, mind you, but something that I could use to record my practicum teaching on Monday.  I got one.  Nothing fancy, but it does capture my voice and my actions and that’s what I needed.    I also needed to buy a memory card so that I can record the full hour that I’ll be teaching on Monday, but that was on sale at another store.  All in all, I spent under $100.

But it was an unexpected event and I did not want to use my credit card or my line of credit.

I took the C-train down to the end at Somerset where there were 3 stores for me to price-check.  I made my rounds and decided on this one, mostly because of the price.  It’s also nice and small and it takes still pictures as well, which means I don’t have to take my camera along.  The camera came from Futureshop and the memory card came from Staples.  Then I had to go back to everyone else and tell them I didn’t want what I had set aside (just in case someone else was in the same dire straits as I)

I did use my line of credit to pay for the camera, but I have $100 coming from ING to pay it back.   That’s why I’m happy this morning!

Some people, and Dave Ramsey (Total Money Makeover) recommends this, don’t add to their $1000 emergency fund until after the debts are paid off.  I’ve chosen to automatically transfer $10 per pay period to that account.  I still have the $1000 I want to have there, with a little bit to spare.  Somehow, in my head, I need it to stay at $1000.

If you don’t already have such a cushion socked away, start today.  It is very stress-relieving to know that an unexpected need isn’t going to blow your finances off track.

Now, back to making breakfast!

Have a great Friday, and if I don’t post before Monday, a great weekend.

Marcia

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Filed under GREEN: Money matters that matter.

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