What is considered an emergency to use your EF?

**LexTysMommy** · 08-08-2008, 08:23 AM

Been thinking alot about this lately. After reading some posts about money, debt, etc.

I used to not have EF, I used to use CC's for any "emergencys" that came up. I still have one that is 0% until 2009 that I "could" use if need be, then pay off before 2009.

Do you have seperate savings and EF? I have my EF in an ING account, and transfer all "leftover" money weekly to it. I have savings account set up through bank and its at $10. I like all my money in ING so its harder to get out, and i have to think about it.

BUT what do you consider an emergency for you to pull from that EF?

**PrairieRose** · 08-08-2008, 08:30 AM

For me;

Unexpected expenses like a root canal (we don't have dental insurance), or an auto repair (say your transmission goes out), or the hotwater heater quits and even causes a minor flood---leaving you to hire someone to clean up the water damage.

It's not for things like a great sale at the mall or a weekend in the city. Although sometimes you really need a getaway...

**Russ** · 08-08-2008, 08:32 AM

To me, it is just that, an Emergency fund. Money you need in an emergency as in... something not in your budget.
Unexpected car repair, tree fell in your yard due to bad storm.. etc.

To quote Dave Ramsey...

It is a rainy-day fund, an umbrella. An emergency fund is for those unexpected events that are not regularly planned for happening in life - you lose your job, there's an unexpected pregnancy, the car's transmission goes out, or, or, or.

**KKCondrey** · 08-08-2008, 08:34 AM

We used our savings when Joes store got shut down and he had to get unemployment which was 1/4 of what he use to make. Starting with today's paycheck I am putting as much as my paycheck in savings as possible to build a ef up so that I have money for my carpayment for at least two months after I take off to have this baby next March.

**MomToTwoBoys** · 08-08-2008, 08:41 AM

What do I consider an emergency?

Either kids need an ambulance ride to the hospital.

Something goes out on the car and we need it fixed right away.

The hot water heater goes.

That's just our baby EF too. Once we get a 3-6 month living expenses EF saved up, that'll be for when the furnace goes out or the roof needs repair or the car just dies all together (which I don't see happening for a while). We'd also include anything in the house that suddenly dies.

**TexasPeanut** · 08-08-2008, 08:47 AM

It was tempting at times to touch ours but I have finally found the peace of mind knowing it's there so I no longer want to touch it. We just have ours set aside like everyone else, in case something happens. In case of a hurricane, roof problems, plumbing, ac/heat, septic, water well....etc. It's for that or if something should happen with hubby's job, I know we can at least pay the necessities (i.e. mortgage and utilities) for awhile, won't have to worry bout food we have plenty stockpiled. We have some of ours set up in a savings account and some in cash.

**elphie** · 08-08-2008, 08:57 AM

Our EF is six months salary. It is there if my husband, our sole earner, were to get laid off or injured preventing him from working. We have a separate savings account for minor emergencies (such as car repairs), annual expenses (taxes, Christmas, vacation, fire dues, etc.), a few days of missed work due to illness or weather (dh works outdoors), etc.

The savings can help us cover any of our bills if we are running short one month but the EF is not touched unless we absolutely can not pay a NECESSARY expense... if we can't pay the cable bill without using our EF, even for one month, we agree to cancel the cable... we don't want to establish a bad habit of dipping into the EF w/ plans to pay back later.

**TheRootedNomad** · 08-08-2008, 08:59 AM

I'm a little more stringent than most people posting so far. I think car and home repairs should have a fund and be budgeted for if at all possible. I set money routinely aside from our budget for those types of things. We even have a HSA account so most of the medical stuff is there too. It took us a long time to get to this point but we went this route when we could because otherwise "emergencies" were popping up all too quickly.

Now our emergency fund is set aside for things like

~ job loss
~ if there was ever a family/medical emergency where one of us needed to be off for an extended period of time or travel to help out (his family is mostly in Fl., my brothers move about frequently)
~ if something extreme happened like the roof blowing off or a newer car becoming totaled we might pull from here but anything that extreme should be reimbursed by insurance and it would simply be a convience.

I'm sure we would pull from it for other things if we HAD to but I'm having a really hard time thinking of anytime we would need to pull from it (that wouldn't be reimbursed) other than one of us being out of work. ... So I guess mainly our EF is for when one/ boht of us is not drawing income.

**The Muse** · 08-08-2008, 09:11 AM

For me, we'd have to be out of work and have no other way to pay our bills. We're fortunate to have good cashflow, so most unexpected expenses (new water heater, medical bills, etc.) can be paid out of our monthly incomes.

**mombottoo** · 08-08-2008, 09:24 AM

EF would be used only if our income source dried up to pay monthly living expenses, my WTH Fund would be used for car repairs/replacement, house repairs, etc. but only if I didn't have the money in the checkbook to cover them.

**Buckeye5** · 08-08-2008, 09:43 AM

Our Ef was just used for a $1400 unexpected transmission. That one hurt. I am going to start adding a bit more to the savings beacuse my appliances are giving hints to breaking down. They are getting old, also, we need in the future roof, windows. So my Ef is going to be $2000 for other emergencies, and the rest for thos above mentioned repairs.

**Wendy99** · 08-08-2008, 10:18 AM

Right now I have no other spare cash so our EF is currently for everything that is a need (not a want) ... ie. car breaks down, house repair ie. heater / hot water heater, major NEEDED appliance breaks down: fridge/stove, water damage, job loss (although it won't get us very far for that right now at $1000). We are starting our sinking fund shortly and that will help catch some ... want to try to figure out what sinking funds we need where so we can balance between that and EF .. I would REALLY like to see the numbers of our EF up much higher ... even just having no debt and a BEF of $1000 makes me sleep better at night .. funny how that works .. our EF use to be our cc and I use to lay awake at night stressing about $$

**Greebo** · 08-08-2008, 10:20 AM

Originally Posted by MomToTwoBoys

What do I consider an emergency?

Either kids need an ambulance ride to the hospital.

Something goes out on the car and we need it fixed right away.

The hot water heater goes.

That's just our baby EF too. Once we get a 3-6 month living expenses EF saved up, that'll be for when the furnace goes out or the roof needs repair or the car just dies all together (which I don't see happening for a while). We'd also include anything in the house that suddenly dies.

What she said.

**C@rol** · 08-08-2008, 10:56 AM

Originally Posted by LexTysMommy

(1.)Do you have seperate savings and EF? (2.)BUT what do you consider an emergency for you to pull from that EF?

1. Yes we have separate savings and an a EF.
2. We consider an emergency a family relative being
seriously ill and we have to travel (both of our
families live out of state) to be with them. Medical emergency.
Lost of employment would be an emergency. Emergency repair of roof,
plumbing and electrical. Generally things that can't be waited on
to be repaired or assist a loved one.

Great question.

**starsapphire** · 08-08-2008, 12:02 PM

Job loss, medical emergency, car breakdown, appliance breakdown, family emergency where we would have to hop in the car/hop on a plane to go be with family.

We have just one pot of money for everything like that right now so that's where all unexpected spending will have to come from until our EF is fully funded. After that, I'll be able to start saving separately for car breakdowns, appliance breakdowns, medical co-pays, insurance premiums, etc. Right now we just try to cash flow alot of that stuff. Its slow going but we're getting there.

This month we are taking advantage of an unexpected opportunity and buying an inexpensive new to us car. Which is what we were going to start saving for after the EF was completed but this is too good of a deal to pass up. We're able to cash flow half of it and the other half will be coming from the EF. This is a month where I get 3 paychecks instead of two so I'll be able to pay back the EF ten days later. Both of our cars are really old and slowly falling apart and we get a little nervous just driving them out of town. This new to us car is in great shape and we won't have to worry so much about a breakdown out of town. I can't wait to go buy it