The Insightful Monday Series will start up again in January, hopefully they will help start the year off right! I have a few goodies lined up to help kick my readers into high gear. 🙂
The year is coming to an end very quickly, with so much still to do for the holiday season. Tonight is my last chance to get the few things done that still remain on my list.
Today, I am not going to post about DIY, our renovation plans, fitness or inspiring thoughts. Today, I would like to share my personal opinion on the importance of having an emergency fund throughout the year. December has been a real doozy for my husband and I. We have experienced more unexpected expenses than ever before. Obviously, this comes at a pretty inconvenient time since we are already spending a small fortune on Christmas and our regular bills. That is life though, right?
When my husband and I first bought our home more than 3 years ago, we sat down together and worked out a household budget. The budget included fixed and variable expenses, along with general savings and an emergency fund. The reality is owning a home comes at a cost and some of those costs are unexpected. Now, if you spend any time on Google or pick up a home budgeting guide the general rule of thumb is to have 3% of the value of your home in an emergency savings fund. That figure could be a sizable amount of money, ranging anywhere between $5,000 -$15,000+ depending on the value of your home. Between unexpected car repairs, medical bills (even though we have insurance!), appliance replacement and many other items that do not fall in any of those categories, the money flowing out is at a rapid pace!
More than ever, I am so thankful we understood the importance of having an emergency fund, specifically liquid cash sitting in an account waiting for the day we needed it. By having an emergency fund (now needing to be replenished!) we did not find ourselves in a position of putting the bills on credit or a payment plan, therefore not subject to the cost of interest. Our appreciation for that money is even greater since it is Christmas time and could be easily spent on “consumer items”, aka- crap you don’t really NEED.
Every family or household has a different approach to budgeting, some more effective than others. My hope is, if your family does not have an emergency fund currently, you will make it a new years resolution to start incorporating one into your monthly budget!
Merry Christmas Everyone!