A couple of questions to think about.

[homesteadmamma]

We all know how important an emergency fund is. Shell has been doin a wonderful job encouraging us to put $$ into the fund each month.

I read recently we should all have at least 6 months salary in the EF. Now I know many of us can't do that (ourselves included), but I thought it would be interesting to ask a few questions and see if you could pay cash should these needs arrive.

~if your car battery went, could you replace it and pay cash?

~if your hot water tank sprung a leak, could you replace it and pay cash?

~if your oven element went, could you replace it and pay cash?

~If you found a good loss leader, one you hadn't seen in months, could you purchase more than 10 of that item and pay cash?

~Could you go one month w/o using your cc and pay cash for all necessities?

[Shell]

Oh thanks CJ.

And yes I could.

[kimmee]

we could do all of those things but we could not pay the mortgage in a pinch without using a credit card. We could not replace a stolen car but we were just able to replace all four truck tires ($481) when Bruce had a blow out - thanks to living beneath our means. We were also able to get my tooth fixed ($210) a few months ago in an emergency and get Kennee neutered right after he got Shtinkee pregnant ( we planned that). Two years ago I would've never been able to do this - I guess sometimes Bruce stressing about money isn't such a bad thing and I sure have learned plenty here!!

[Darlene]

Yes.
That said... car troubles and dental bills are what send us over the line. Just got done with paying for 3 cars to be fixed, one at $700, Mine at $100 and Jacks at $70. Also just put 2 tires on Marks car after someone ran him off the road and didn't stop & 2 tires on Jacks truck. Day after Thanksgiving Nicole will have her tonsils out (Ins. covers most we just have a deductable on that) & in January she will have her wisdom teeth out (that will cost at least $1500 of witch we pay all.)
Yep, we save for unexpected and expected bills around here and hope, hope, hope, they all don't come at once.

[Michelle]

No to all questions asked.

[PrairieRose]

Yes to all, but about 2 years ago the answer would have been no.

As far as having 6 months living expenses in savings, it's much, much easier to get there if one will skim 10% off the top and put into the EF when the money comes in. That's the only way we've ever been able to do it. It really adds up fast and you really don't miss it this way. (Great thread Ceej)

[DaisyLady]

A definite no to all questions asked. But next month we will be at the point where we will not need to use the credit card for overdraft for basic necessities. I just pray we don't have any emergencies.

[Mom23boys]

~if your car battery went, could you replace it and pay cash? *YES!*

~if your hot water tank sprung a leak, could you replace it and pay cash? *YES!*

~if your oven element went, could you replace it and pay cash? *YES!*

~If you found a good loss leader, one you hadn't seen in months, could you purchase more than 10 of that item and pay cash? *YES!*

~Could you go one month w/o using your cc and pay cash for all necessities? *YES!*

[Dixie]

Yes, to all the questions, by the grace of God.

[guest2]

I'm happy to report that yes we could!!! 6 months ago we could not have done that but now if those things happened 1 at a time we could.

[marietjie]

Yes, we could. I am so thankful for all that we have learned.

[Telephus44]

~if your car battery went, could you replace it and pay cash? - YES. I actually had to use my emergency fund to pay for part of a new battery AND a new alternator two months ago.


~If you found a good loss leader, one you hadn't seen in months, could you purchase more than 10 of that item and pay cash? - YES

~Could you go one month w/o using your cc and pay cash for all necessities? - YES

We rent, so we would just call maintainence - I'm not sure how expensive these things are:

~if your hot water tank sprung a leak, could you replace it and pay cash?

~if your oven element went, could you replace it and pay cash?

[pqb52]

I completely agree with having an emergency fund, but are you considering an emergency fund for your retirement years, there is a chance Uncle Sam may not be there for us.

[nodmicks]

A big yes, thank heavens!

[Michele Annette]

I can say Yes to all that apply, except we pay rent as well and the oven and hot water tank would be up to the landlord. We pay a heck of a lot of rent though, so Yes, we would be paying for it!