Emergency Fund is a Must Have

Once my spouse & I set aside a hundred “for emergency only” and built it up to $1000, life is more relaxing. We hit our goal of $1K and the next month our car broke down on a trip to see family. For the first time in our marriage, we had the funds to fix it and keep going. No more wondering which bill wouldn’t get paid. 

Now with YNAB we are starting to pay this month’s expenses with last month’s income. A glorious way to celebrate love. 

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  • Having an emergency fund is a game changer! I've been YNAB-ing for two years now and I am finally fully buffered and working on building a 3-month emergency fund.

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  • I had something similar happen! Our emergency fund was pretty small, but we've been adding to it regularly. Then, my cat had to have emergency dental surgery. I was able to pull the money out of the emergency fund and still have some left over. Prior to using YNAB, I would have just put it on my credit card and it would have ended up being a $1000 surgery instead of $600. lol 

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  • We have been using YNAB for a year and have just reached our goal of 6 months of necessity expenses in our emergency fund.  We had savings before, but never knew exactly how much or how long it would cover our expenses.  It's a great feeling to know exactly where our money is and to have a plan if we lose an income.

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    • Cornflower Blue Viper (2fb72f225077) 

      A big part of that is having the data to see what 6 months of necessities really costs!  Congrats on having 6 months covered - its good to have that security.

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  • Hi Magenta Unicorn, 

     

    Did you put aside $100/month for your emergency funding? I'm trying to do that now. Set up an emergency fund, I mean. I try to put aside a certain amount of cash toward it every paycheck but I certainly don't have anything planned out. 

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      • Magic Penny
      • Gold_Cup_24dfc8f1b0ad
      • 3 yrs ago
      • Reported - view

      Slate Gray Mare (fcb8e451f82e) 

      I think lots of people just add a category to their budget and contribute to it each month. I did that for my rental condo e-fund. 

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