A couple of weeks ago, I wrote about how my microwave is broken (I think that we should be able to get it fixed under warranty...I just have to wait for my husband's knee to heal enough to take it down). However, we came home from my in-laws house tonight to a VERY cold house. It was 49 degrees! We had turned the heat down to 62 before we left, so we were quite surprised.
I pulled out the instruction manual and tried to reset the pilot light. The furnace tried to kick on 3 times, and then the warning light flashed. So, I shut everything down, and we'll call the heating & cooling company tomorrow (I think we can survive until tomorrow...so no need to pay for emergency service).
Of course, I worry that we'll need a new furnace (ours is 19 years old), but I don't need to worry too much, since we have an emergency fund in place to pay for it if we do need one.
Most professionals agree that you should keep about 3-6 months of expenses tucked away in case of an emergency (like needing a new furnace) or in case of a job loss. They would suggest that you keep this money in a liquid account where you can access the money quickly, and one that does not carry much risk (such as a savings account or a money market account rather than the stock market).
Do you have an emergency fund in place? How much do you keep in it, and where do you keep it?
Jennifer says
We have the beginnings of an emergency fund. Right now it has about $500 in it. My husband has fairly decent credit and in a true emergency we could use that, but it is not something that we would truly want to do. It would be defeating the purpose of getting out of debt.
Hope it is something simple for you to fix and not a major draw on the emergency fund.
moneyloveandchange says
We have a $1100 emergency fund right now, and we are so thankful for it. It used to be much larger, but we had unexpected truck repairs that depleted it. We're working on getting it back up!
Erin Tales says
WE have a bit of an emergency fund. But I dont like touching it! And we had to and now we are working hard to get it back up!
Guest says
When I received my income tax this year I started up my EF. I put it in a money market acct. This is where I am building up my 3-6 month EF. I do have another fund for anything that will happen such as repairs to the house, car, etc.,. This year with the second EF I am going to put siding on my garage. I have my company take out $100 out every two weeks and put it in a credit union that I very seldom go to. I never touch any of this money unless it is absoultely necessary. I give up alot to do this, but I have this fear of credit cards and taking out loans. Do I make alot of money. No. I make about $22,000 a year, but I am very frugal, use coupons, transfer prescriptions to get a $25 card for each transfer of my medication, don't buy anything unless its a necessity, and make most of my food at home and never eat out unless for a special occasion.
Corrie @ Centsable Momma says
Sounds like you're doing great! It's a good idea to get the EF rolling with your tax return.