Emergency Fund Spending
You worked hard to save up for an emergency. Even though you know these funds are for emergencies, there are sitting there in savings and tempting you to spend them.
Make sure you ask these 3 questions before spending your emergency funds:
1) Is the thing you want to spend your money on UNEXPECTED? For instance, do you need to pay your rent or mortgage because you lost your income due to downsizing or health? Or did you just forget about a big bill that comes up annually?
2) Is this something that is absolutely NECESSARY? Sometimes things seem "necessary" because it looks like a really good deal that you may never see again and you were thinking about getting it anyway. But at the end of the day, it is still just a want.
3) Is this URGENT? If you decide it is a need, is it something you have to have today or can you wait and save up to buy it later? If your water heater is making some pinging and knocking noises but it isn't broken, you can save up over the next few months for it so you won't have to dip into the emergency funds.
And if you decide it meets all 3 criteria above and you have to dip into the emergency funds, make sure you build that fund up again as soon as possible, you know, in case of another ergency.
You can master your money... and I can help!
Contact Michelle Serna by filling out the Contact Me form.
No comments:
Post a Comment