Are You Prepared?

I am a HUGE fan of savings.  I used to live with an average bank balance of $4.13, and I thought that we were doing really good because we had paid all of the bills on time.

The fact was that every single time life happened, our finances were crushed.

So today's question is: "Are You Prepared?"

As I share in I Was Broke. Now I'm Not., my family has experienced its fair share of "life happens" events.  Here are some of them.

  • Hospital  My daughter could not breathe and went to the emergency room.
  • Car Part Repairs  The car broke down.  Multiple times.  Repairs included power steering rack, AC failure, ignition switch, and water pump.
  • Car Body Work  The car was involved in an accident with our truck.  Yes, one of us in our family was backing up the car and scraped it along the side of the truck.  We also had a small fishing boat fall over and hit our car leaving a huge dent.
  • Appliances  The dryer died.
  • Healthcare  Jenn had to have major surgery in 2003.  Just ten months later, she had to have major surgery again.  In 2007, I had hernia surgery.  Now, Jenn has just had surgery again.
  • House Repairs  We purchased a thirty year old house in 2007.  It required lots of repairs.  LOTS more than we originally anticipated.
  • Emergency Trips   For death in the family.

We have experienced lots of "life happens" events that have cost a ton of money.  Before December 2002, we would have just pulled out the credit card to cover these types of events.  Since December 2002, we have been prepared with a fully-funded emergency fund.

Are YOU prepared?

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2 Comments

  1. Moneymonk on November 5, 2008 at 9:40 am

    Murphy has been busy in your house. It’s takes things to spin out of control for people to save.

    Once I bought a house and had a baby was my turning point to pay off debt and save for college. I was already savng for retirement.



  2. Redonno on November 6, 2008 at 7:05 pm

    I agree completely! Just a couple days ago, “life happened,” and our dryer died. However, we had a starter emergency fund sitting in the bank waiting for an event like this.

    While it is frustrating, it’s very calming to know tomorrow we will be buying a slightly used washer and dryer for only $200. Savings are highly important!



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