https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">EMERGENCYhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

Uh oh, do you have money set aside??https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">

Let me explain the importance of an emergency fund using something that happened to me yesterdayhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙃" title="Auf den Kopf gestelltes Gesicht" aria-label="Emoji: Auf den Kopf gestelltes Gesicht">

(thread)

So I was driving down the road, and noticed someone pulling onto the street I was on..

I saw they were on their phone https://abs.twimg.com/emoji/v2/... draggable="false" alt="📱" title="Mobiltelefon" aria-label="Emoji: Mobiltelefon"> and not paying attention

I moved lanes but they kept coming

And I swerved out and hit the curbhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙃" title="Auf den Kopf gestelltes Gesicht" aria-label="Emoji: Auf den Kopf gestelltes Gesicht">

Popped my tire on my https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚘" title="Entgegenkommendes Auto" aria-label="Emoji: Entgegenkommendes Auto"> (hoping that is allhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Folded hands" aria-label="Emoji: Folded hands">)

Luckily, my insurance sent me a tow truck and it took me and my car to a tire shop

Here is my car (still haven’t thought of a name for it yet lol)

https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

I had to get 2 new tires on my baby

$300 in totalhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Am I upset that it happened? Of course

But, financially I am okay https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌🏻" title="Ok hand (heller Hautton)" aria-label="Emoji: Ok hand (heller Hautton)">

WHY?

Because of my EMERGENCY FUNDhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

An emergency fund is a fund you set aside for EMERGENCIES ONLYhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

What’s not an emergency?

-A sale at the mallhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen">
-A weekend trip to NYChttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen">
-A nice dinner with friendshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen">
-A new TV for football seasonhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen">

So what is an emergency fund?https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤔" title="Denkendes Gesicht" aria-label="Emoji: Denkendes Gesicht">

An emergency fund is a safety net of money for unexpected expenses or issueshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="✔️" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen">

What is an emergency fund used for?

-Job loss
-Health emergencies
-Car issues (Flat tires)
-Housing issues (A/C breaks)

Notice how these differ from the last tweet?https://abs.twimg.com/emoji/v2/... draggable="false" alt="👊🏻" title="Fisted hand (heller Hautton)" aria-label="Emoji: Fisted hand (heller Hautton)">

So for example, yesterday, I didn’t plan for that to happen, nobody does...

So my emergency fund https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht"> steps in and will take car of the costs associated with this unexpected eventhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">

How do you decide how much money should be in your emergency fund, let me explainhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

It is widely accepted that your emergency fund should have 3-6 months of expenseshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Obviously each person will have a different number

I have $2,000 in my emergency fund and that’s sufficient for me

But that doesn’t mean it is sufficient for everyone!https://abs.twimg.com/emoji/v2/... draggable="false" alt="👊🏻" title="Fisted hand (heller Hautton)" aria-label="Emoji: Fisted hand (heller Hautton)">

So how do I refill my $300 I spent on tires?https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤔" title="Denkendes Gesicht" aria-label="Emoji: Denkendes Gesicht">

My emergency fund will now be at $1,700

Over the next couple paychecks, I will set aside $100 or $150 to push the amount back to $2,000

Simplehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

Yes, most people can pay the $300 for new tires and call it a day

BUT

What happens if you get hit with a $1,500 A/C unit issue at your house

You’ll be happy you had that emergency fund set asidehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👊🏻" title="Fisted hand (heller Hautton)" aria-label="Emoji: Fisted hand (heller Hautton)">

It’s better to have it and not need it then to need it and not have ithttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤷🏼‍♂️" title="Achselzuckender Mann (mittelheller Hautton)" aria-label="Emoji: Achselzuckender Mann (mittelheller Hautton)">

I hope this thread was able to get the message across on the importance of have an EMERGENCY FUND https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">

I am okay! The car is okayhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤞🏻" title="Crossed fingers (heller Hautton)" aria-label="Emoji: Crossed fingers (heller Hautton)">! (Going in Saturday to make sure everything is 100% okay!)

Thank you for reading and stay safe y’all https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Folded hands" aria-label="Emoji: Folded hands">

@DecadeInvestor