Viewing the 'Emergency Fund' Category
Two weeks ago we sent in our final payment on our car, making our goal of being debt-free by our final Financial Peace University class! I know that if we had not had the concrete goal we would still be paying on it. It was so nice to celebrate with everyone at our closing dinner.
We had a potluck dinner before viewing the final lesson together. My husband has a co-worker that makes cakes so we asked her to make us a credit card cake that everyone could cut a piece out of for dessert. Everyone loved it! Here's the cake:
It sort of seems anti-climatic to be debt-free now. Maybe it hasn't sunk in because I haven't had the chance to enjoy NOT writing that monthly check.
We are now started on our fully funded emergency fund. We have a little over half of a month's worth of expenses so far. I'm anxious to watch that balance grow.
LuxLiving tells me that I need to update, so here I am. :-) I do mean to post here more often, but it just doesn't seem to happen.
We are doing fairly well. We did have some excitement this past Tuesday. Son # 2 (of course!) called and asked us to come pick him up. He was on the interstate and his engine blew! He said that oil sprayed everywhere and the compartment filled up with black smoke so that he couldn't see to pull over. He slowed and edged over until he felt the rumble strip and managed to get off the road. By the time we'd gotten to where he was stranded, he had the car at a salvage yard and made arrangements to send them the title to scrap it. So he is without a car once again. This was the 6th car since he started driving 3 years ago that has bit the dust!
We are still whittling away at debt. We have just over $6,000 left on the car and then we will be on to working on a fully-funded emergency fund.
I did quit my 2 evening jobs. It was getting to be too much with taking 2 classes and DD's volleyball season starting up. I got to figuring that by the time I bought my dinner those nights and took into account how much I spent on gasoline, I really wasn't making anything anyway. It's been a huge relief. I am still doing bookkeeping for one library as a side job though.
Guess that's all I can think of that's happened lately. Hopefully I'll get back here before Lux has to tell me it's time. :-)
Thanks to LuxLiving for checking on me. We are alive and well. Last month was a bit of a strain, mostly emotionally.
On July 2nd our middle son (19), who is an EMT in a city 2.5 hours from us, was cleaning some basement walls in his fiance's house and ended up spilling ammonia in both eyes. He had set the bottle up on a pillar above him and when he grabbed the bottle it tilted and poured in his face. He was alone but managed to flush his eyes and dial 911. The ER sent him to a specialist who assured him that the vision would return in 48 hours. 48 hours later the vision was worse. The vision in the right eye was totally gone and the left eye could only see vague shapes. He was referred to a 2nd specialist who also could not find any reason that the vision had not returned.
Finally, on the 3rd week the vision did start to come back slowly. They still wanted to know why it was taking so long to heal so we made a trip to the Cleveland Clinic to be seen at the Vision Clinic. By the time we made that trip the vision was back to 20/20 and only some cloudiness remained on the cornea, which we were told would clear up. I'm thrilled to say that it is all totally clear now. Some of you may remember the accident this same son had a month before his high school graduation when he fell asleep at the wheel, rolled his vehicle 5 times and was lifeflighted to a major trauma center. If anything is going to happen in our family, it will be this child to whom it will happen.
The funny thing is that at the time of the accident he already had an interview set up with the ambulance service that took him to the ER for the following week. He went to the interview BLIND and they HIRED HIM to drive ambulance! I told him that he is the only person I know who could pull that off! By the time he was scheduled to begin work his sight was back.
Now for our 2nd Murphy visit: On July 8th someone hacked into my email and from there, got into my Paypal and Ebay accounts which I haven't used in years. They proceeded to order an iphone and a Louis Vuitton wallet for a combined total of $1500. The Paypal account was hooked directly to both of our checking accounts, but I found out just in time to put freezes on them so that no money was ever removed from our accounts. The crazy thing is that the Louis Vuitton wallet was actually mailed to me from Australia! I refused the package and sent it right back on its way to Australia. I filed a police report but hear that they seldom actually ever do anything. We had the address where they requested the iphone be delivered. It was a medical building in Memphis, TN.
I am happy to report that, besides the mortgage, we are working on our last debt. We owe just a bit over $7,000 and hope to have it paid off early next year, if not before. I am working 2 nights a week and applying all of that income toward this debt. I can't wait to start on a fully-funded emergency fund.
DH and I are going through FPU and we had decided that we are finally ready to take the step of stopping our retirement contributions temporarily so we can apply that money to the debt snowball. I had no problem stopping mine at work since I'm the one that does the payroll. DH went into his payroll department and was told that he can't stop his contributions until the beginning of the next quarter.
It's just very frustrating to finally have him on board and now we can't do this. It will really slow the debt snowball down. I guess I'm just anxious to get it done and get a fully-funded emergency fund.
I'm getting a little nervous about only having $1000 in my emergency fund. I know the reason that Dave Ramsey recommends that amount is because most emergencies will be under $1000. But with the car repairs (if the insurance hadn't covered them) being over $500 just for struts, that's a little too close for comfort for me.
I also think he recommends the $1000 so that it will spur you on to getting baby step #2 (pay off debts) done faster. I just feel like we're not really making much headway there because there always seems to be something else coming up.
I would really like to save another $1000 just to have a higher comfort level, but then it would be putting off getting the mortgage paid off even longer.
The past few weeks I have felt a sense of urgency to get out of debt that I have not felt before.
I have been working on it steadily for about a year and a half now, but the crisis in the housing market and other economic indicators have really gotten me focused on getting out of debt as soon as possible.
The more I observe what is going on around me and hear the horror stories of couples hundreds of thousands of dollars in debt, the more thankful I am that our debt is only $65,000.
I really want to get the debt out of the way and get a fully funded emergency fund built up, just in case.
I read an excellent article on the importance of Emergency Funds this morning on the MSN Money site:
I wrapped up $12.50 in coins today and decided to deposit that in my EF. I normally deposit $25.00 per week out of DH's overtime. I decided this would be a nice little boost to get us closer to my minimum of $1,000.
We picked up our siding for the house this morning, so that was another chunk out of the house repair fund. Between that and putting a new porch roof on, the house repair money is getting hit heavy this spring.
I assume it's just the price of gas and the fact that we now have 7 to feed again for the summer since college is out, but I'm feeling the financial pinch. We just got rid of the credit card debt so you'd think that I'd have some extra money laying around. Not!
I am adding extra to the mortgage payment but that is all coming out of overtime pay.
I think what I need to do is get that EF back up to $1,000 and I'll probably relax a bit. It makes me nervous to not have some money tucked away, just in case.
It's been a while since I've been here. Life just seems to not want to give us a break.
DS#2 had another seizure on Tuesday. This time there was no doubt it was a seizure so he has lost his driver's license for at least 6 months. They did another EEG on Wednesday and found seizure activity on both sides of the brain. He goes for blood tests on the 3rd to test his Depakote levels and then we will have a follow-up with the doctor before DS#2 leaves to work at camp for the summer.
I had hope that with all the car accidents we had there for a while that that would be the last punch that life threw us for a while and we could relax. Guess not!
Let's see...financial side of life is going okay. I had to draw out $500 from our EF so that I can pay my insurance deductible on the car, so that's back down to practically nothing. But on the bright side the last Discover Card payment will be made in a couple of weeks. Then I'll snowball that payment to my car payment.
I am very close to goal #3 of having our overall debt below $70,000 this year so that's encouraging.
DD#1 is done with her 2nd semester of college. She will begin doing data processing for the summer for a local company in a couple of weeks. DS#1 finishes his semester in a couple of weeks and is coming home and hopefully can get his job back at the grocery store.
Now that the Discover Card balance is down to $208.85 I'm scrounging around for every penny I can to get it paid off ASAP. Today I am depositing $5.50 of pennies and dimes to add to the payment. I can't wait to have no credit card debt! Because of the Easter weekend there was no overtime money in DH's paycheck to put toward the payment this week.
I am still using my parents' car since mine is at the body shop awaiting parts. There was a delay with the insurance so no work has begun on it yet. I hope to have it back in 2 weeks. Our EF will take a $500 hit when the car is done, but I keep telling myself that's why we have an emergency fund.
My Chase Freedom card is working well for me. I've earned over $70 in cash-back rewards since I opened it in November. I just started having our utilities billed to it each month, so that should start racking up some points. I'm goint to wait until I reach $200 to redeem them so that I get the extra $250.