A few months ago, I started to put money in a separate savings account, with the idea that it would be my emergency fund. I never really thought about it, I just knew I should have a savings account with money I wouldn’t touch, and all these bloggers I was reading had one, so I thought it was the right thing to do.
However, soon I started really thinking about it and how important it was to have one. We don’t live far from home (in fact, we live in The Banker’s hometown), so we wouldn’t incur a lot of costs if we needed to go home for an emergency; we don’t own a home, so we won’t have any big issues we could come up against; we both have good credit that we could use if we were really in a pinch. But, do we really want to use credit for items if we could have had the cash? Not really.
This month has shown me how important this emergency fund could be. September is a rough month for being a substitute teacher. I never know how much work I’ll get, but teachers are rarely off in the first month of school. There was a good chance I would need to use my emergency fund to get through September and I was so happy that I had it if needed.
If I hadn’t started putting money in an emergency savings account, I probably would have found another place for that money to go (i.e. spent on pointless things), and I would have been a lot more stressed this past month. Maybe I haven’t had to use it, so I haven’t benefitted from it, but I’m glad it’s there as a safety net.
Do you have an emergency savings fund? Why or why not? And have you had to use it?