<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Emergency fund
 

Emergency fund

May 26th, 2007 at 04:54 pm

Happy to say I am still working on this number one goal of $5000 in emergency fund, despite tinyness of income. I am now at nz$3340. If I can keep it intact until I get a decent earning job I will be very happy. When everything seems to go on bills it's easy to get blue.

For those who are still struggling to pay off debts, I found in my case that it helped to be working on a positive savings goal at the same time. Obviously not have 000s in the bank that could be used to reduce interest paid on loans, but maybe put spare change towards a weekend away or a new car or whatever tickles your fancy. I just got too discouraged thinking everything fun had to be put off till the mortgage was paid. It is important to establish the savings habit immediately, IMHO, or you may wind up like so many people who pay off the credit cards and then run them up again because they haven't learnt good habits. I think David Bach calls this the "bury the past, jump to the future" approach or something like that. Rather than argue over whether every extra dollar should go off the loans or be stashed away, I take a 50/50 approach.

2 Responses to “Emergency fund”

  1. Aleta Says:

    One of the things that I was working for was a medium playground. I was told to at least save $5. a week, just for savings sake puts you into a savings mode. Also, having fun is extremely important while you're getting out of debt. You have to have a happy balance there. It just can't be all work and no play.

  2. Amber Says:

    You're rigt, I was saving as well when I was paying off my debt. Combined it was a wonderful accomplishment

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]