How an emergency didn’t become a crisis
In my last post I briefly wrote about how my husband needed an emergency route canal. Prior to having an emergency fund, this situation would have been a crisis. Not only would we have dealt with the physical components of having a route canal (the pain, discomfort and inability to work for a few days while on pain meds) but we also would have dealt with the fact that we didn’t have money to pay for it.
Since we had an emergency fund, it made the situation so much easier! We actually had money to cover this unexpected expense and didn’t have to worry about all the extraneous decisions that come with not being able to afford it. After reading Dave Ramsey’s “Total Money Makeover” it made sense that emergencies will happen so why not prepare for them? He recommends having a 3 to 6 month emergency savings of your monthly expenses (the bare minimum you need to eat and pay the bills.) We saved enough for a 3.5 month emergency fund. Unfortunately the route canal and the computer breakdown happened within a few weeks of each other, it was like a one-two punch but we were still able to afford both. We are now down to a 3 month emergency savings and deciding if we should totally replenish it next month, or just leave it and keep paying down the house.
Questions for you: What do you think? Should we replenish our emergency fund next month (approximately $2,000) or should we leave the emergency fund alone and use that money to keep paying down the house?