There was a day that I was completely broke and had an average bank balance of $4.13. It was awful living with no margin. Anytime an issue cropped up, we had a problem AND a money problem.
One of the best things that Jenn and I did was save money into an emergency fund. What can the money be spent on? I am not sure … I have NEVER spent the money! Seriously, in over five years of having an emergency fund, we have never spent the money.
Did I have an emergency? Well, others might have called them emergencies, but the Sangl household did not. Let me list just a few of the events that have occurred.
- Jenn had major surgery that blew up the $2,300 insurance deductible.
- Ten months later, Jenn had to have the surgery AGAIN. AND it was in another deductible year.
- Power steering went out on the car.
- Transmission went out on the truck.
- The dryer died.
- Huge leaky roof problem.
- I had hernia surgery that blew up the $3,000 insurance deductible.
The Sangl household did not use the emergency fund for ANY of the above expenses. Why? Because they are not really emergencies!!!
Think about it this way.
- Is it a surprise that humans get sick and need surgery? NOPE.
- Is it a surprise that cars break down? NOPE.
- Is it a surprise that an appliance breaks? NOPE.
- Is it a surprise that roofs will leak? NOPE.
When I really think about it, I am not sure we will ever use the emergency fund but it is incredible knowing that it is there!
I wonder if HAVING an emergency fund in place scares off emergencies?
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