Its no secret that I am a big proponent of having an emergency fund. I believe you should have at least $500 in an lofty bank account somewhere that can be easily accesses because you just never know. Without easily accessible funds, you can be really putting yourself in a bad situation with borrowing money from family and friends or worse. This is the precise reason I call my E-fund my “helps me sleep at night” fund.
If you have been following my blog, you may have read that I have not always been responsible when it comes to paying debt. The one thing I have always been good at is stashing a small amount of cash aside for emergencies. My mom didn’t give me a lot of financial advice but she did make sure that I understood that. In fact, I remember even having a little pink Hello Kitty (remember that?) wallet and having a few $20’s inside it when I was like 9 years old. Thats was a fortune to me back then. I guess it was a lot more money then than it is now but that was like lottery money to a kid. Anyways, even then, it helped me feel better to know that I had some cash available no matter what. Did you have this habit as a child?
As I grew older and things became more expensive, it seemed even more important for me to have savings. I tried to save what I could but it was hard at times. I started working at a young age and it helped. My parents never had a lot of money so I was responsible for a lot of my purchases as a teen which prevented me from having any real savings but I did have something.
Now that I have gotten serious about being frugal, I have more motivation to save as much as I can and to to grow this blog as much as possible. I want to save very decent amount of money before my next birthday or get to it as close as possible. My magic number is $10,000. That would provide a very good cushion in case one of us loses our jobs–not that we are planning on it or anything but I want to be prepared no matter what. This would remove a lot of my worries as money is definitely a trigger for me. This would help me “sleep better at night” so to speak. Without it, I can’t feel completely comfortable. So anyways, this is a big goal for me right now.
Is having an E-fund important to you? Does it help you sleep at night having one?