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EMERGENCY Uh oh, do you have money set aside??
Let me explain the importance of an emergency fund using something that happened to me yesterday
(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
and not paying attention
I moved lanes but they kept coming
And I swerved out and hit the curb
Popped my tire on my
(hoping that is all
)
I saw they were on their phone
and not paying attention I moved lanes but they kept coming
And I swerved out and hit the curb
Popped my tire on my
(hoping that is all)
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)
Here is my car (still haven’t thought of a name for it yet lol)
I had to get 2 new tires on my baby
$300 in total
Am I upset that it happened? Of course
But, financially I am okay
WHY?
Because of my EMERGENCY FUND
$300 in total
Am I upset that it happened? Of course
But, financially I am okay
WHY?
Because of my EMERGENCY FUND
An emergency fund is a fund you set aside for EMERGENCIES ONLY
What’s not an emergency?
-A sale at the mall
-A weekend trip to NYC
-A nice dinner with friends
-A new TV for football season
So what is an emergency fund?
What’s not an emergency?
-A sale at the mall
-A weekend trip to NYC
-A nice dinner with friends
-A new TV for football season
So what is an emergency fund?
An emergency fund is a safety net of money for unexpected expenses or issues
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?
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?
So for example, yesterday, I didn’t plan for that to happen, nobody does...
So my emergency fund steps in and will take car of the costs associated with this unexpected event
How do you decide how much money should be in your emergency fund, let me explain
So my emergency fund
steps in and will take car of the costs associated with this unexpected eventHow do you decide how much money should be in your emergency fund, let me explain
It is widely accepted that your emergency fund should have 3-6 months of expenses
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!
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!
So how do I refill my $300 I spent on tires?
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
Simple
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
Simple
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 aside
It’s better to have it and not need it then to need it and not have it
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 aside
It’s better to have it and not need it then to need it and not have it
I hope this thread was able to get the message across on the importance of have an EMERGENCY FUND
I am okay! The car is okay
! (Going in Saturday to make sure everything is 100% okay!)
Thank you for reading and stay safe y’all
@DecadeInvestor
I am okay! The car is okay
! (Going in Saturday to make sure everything is 100% okay!) Thank you for reading and stay safe y’all
@DecadeInvestor
