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Emergency Fund Account

October 19th, 2006 at 10:41 pm

We decided that we would take our measly Emergency Fund and open an account with Amboy. It's not much, but it's a start. I plan on contributing weekly out of my husband's overtime to get it to a minimum of $1,000. This will be my first financial goal.



I know there is debate about paying off credit cards first or having a baby emergency fund. For me, it's better to have the EF. It gives me a better piece of mind so that I don't worry quite as much about finances if I know there is some money if we have a need. I think by having it in this account, we won't be so apt to dip into it to pay for everyday expenses like we would if it were in our regular savings.

4 Responses to “Emergency Fund Account”

  1. LuxLiving Says:

    Congratulations!

    Tickled that you are setting goals and taking the actions to meet them. Pat yourself on the back for me.

    Atta Girl!

  2. Broken Arrow Says:

    Yes congrats, because I think this is a very wonderful thing!

    Also, I wouldn't say it's measly. I remember when I first vowed to get back on financial track. I started out by holding a simple $20 bill in my hand and said, "This is the beginning of my future. This is going to be the start of something truly awe-inspiring!" And that's all I had to my name, whilst I sat on the mountain of mess that was my finances. $20 may not seem like a lot to anyone lese, but to me, it was something I've never had before.

  3. Bookie Says:

    I'm with you on the importance of an emergency fund -- even if there is unpaid debt. As someone in the forums said, "Lack of an emergency fund was why I got into debt in the first place."

    Another observation I read somewhere, "The best way to avoid needing an emergency fund is to have one." Logically, that statement makes no sense, but my experience bears it out.

    Anyway, congrats on the new account. May it grow and prosper. Smile

  4. LdyFaile Says:

    My theory is that it's a catch 22. They say put it all towards debt but then what happens when an emergency comes up? You use your credit card. So I'm working on building up 1k EF for now, then I'll pay off my credit cards, then I'll build up my EF more. Well, I'll probably work on my Student Loans then but you get the idea. Should you have the 3-6 months of salary saved before tackling debt? I don't think so, at least $1k should be enough to cover anything that might come up while you're paying other stuff off. But that's just my two cents.

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