Our Emergency Fund is Our Hero: Again

If you’ve read other Money is not Taboo posts, you might have come across my other articles about our Emergency Fund. Here’s another one.

Luckily, we keep a fund in place.

Intro

I’ve had cardiac issues since 1998. On the other hand, my wife never has, so when she said she needed me to rush her into the ER in late December because of chest pains, I did just that, meeting the ambulance at the edge of town.

Seven hours later, we were able to go home, with no signs of heart attack, but really no good answer. So a follow up visit with my Cardiologist was arranged. Selena passed all the tests with flying colors, so we’re thinking that it was something gastric or esophogeal.

I’d last seen my Cardiologist in November, as I was having chest discomfort again. I had a double bypass in 2014, so wanted to get the skinny on what was going on. My tests also showed my heart not to be having issues, but my blood pressure was really high.

It got so high in January, 200 over 120, that I had Selena take me to the ER, where my pressure was brought down with meds. Several trips back and forth to the doctor to try to get it down.

Now, this week, I had to have a broken/infected tooth pulled. I’d been on and off antibiotics since November, fighting a sinus infection. Turns out the root of the tooth was actually up in my sinus cavity. Hmmm. Still on antibiotics, but the blood pressure is down. I’m still feeling pretty “Yucky” but I think I’m on the mend.

Okay. Let’s Actually Get to the Subject

Well, you might already have an idea where this is going. Yep, we wracked up some medical and dental bills, and we’re expecting more to roll in.

In our early years of marriage, we would have been financially ruined, as we had no emergency funds, sure wish we had. Of course, when you’re in your early years, you don’t know much, that’s one of the reason’s that Money is not Taboo has come to be.

We didn’t have much education in personal finance, so I want to help others get a head start in financial literacy.

I’m 57, retired at 54, because we began to learn and started putting money away to work for us. You can read more on this story at Proof that Anyone Can Retire Early…Even a Middle School Teacher.

Emergencies

Not a great word. One that folks don’t want to hear, or experience, but they happen and many cost money.

Insurance doesn’t cover everything, so even if you have insurance for things that it will cover you’re still going to need funds to cover deductibles and such.

Emergencies are things that you can’t budget for, unlike a new set of tires when the old one’s wear out. You can plan for that. Keep track of them.

Now the refrigerator tanking is another thing. You don’t know when that will happen.

How about the hot water heater? Do a google search of the life span, so you get an idea how long it will last.

Hmmm. Maybe you could even do that with the refrigerator.

Anyway about it, emergency funds are important. Wish I’d known that a LONG time ago.

We wouldn’t have had to borrow and pay back money to cover our troubles back then, yeah credit cards and personal loans.

Live and Learn, right?

Wish I had learned much earlier.

Cash Flow and the Emergency Fund

Although Dave Ramsey says Cash is King, I feel that Cash Flow is King. Actually, Positive Cash Flow. If you have more coming in than going out, it’s all good. You can build an emergency fund, while paying all the bills, investing, and having some “FUN” money.

Really, Cash Flow, Positive Cash Flow, is the THE thing that will move folks forward financially. If you’re interested in really seeing how I feel about Cash Flow, then you can find out more at Budget vs Cash Flow and Yes Virginia, Cash Flow Is More Important Than Net Worth.

I do promote Dave Ramsey’s emergency fund idea; “Put $1000.00 away, first. Then start knocking out your debt. After you’ve zero’d out your debt, put enough money away to cover 3 to 6 months worth of living expenses.”

Personally, I think that one should continue to build the emergency fund even while paying off debt.

Don’t Feel You Make Enough Money to Build an Emergency Fund?

Think outside of the box. You can always “Side Hustle” to put one together. Side Hustle? Making money outside of your regular income. If you need some ideas, you should read David Carlson’s (Founder of Young Adult Money dot Com) book, Hustle Away Debt. It’s packed with great ideas.

By the way, the Hustle Away Debt link is an affilliate link. Sending you to an Amazon site where you can purchase the book, and Money is not Taboo will make a little commission.

The Wrap Up

Although I didn’t realize in my early years, almost everybody can build an emergency fund. It’s a matter of determining that you’re going to do so, and actually putting money towards it.

Okay, so, Shin, you’ve talked about the need for building an emergency fund, how does on go about doing it?

In one simple sentence: “Make it a bill that you have to pay every month. What you can squeeze out of the everyday budget to put back.”

Now, I’m not the only one who promotes emergency funds. Here’s some other folks’ thoughts.

How to Build an Emergency Fund and Why It’s a Priority (Young Adult Money)

How Do I Invest My Emergency Fund Savings? (Life and My Finances)

Baby Step 3: Fully Funded Emergency Fund Update (My Family On a Budget)