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Quick Ways to Create an Emergency Fund


GoldenEagle

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Now why did I think you would say that.  :noidea:

 

So, I don't really have an emergency fund as such.

I did open a savings account. 

What I do is this, as in the UK we still purchase things using cash for smaller items, when I get home I throw all my loose change into a jar.

We call this your , "shrapnel" . 

 

Once a month I empty it and go to the bank, throw it into the change counter and then deposit it.

Surprisingly on an average I can save about £45/70 a month this way and I don't really notice that it's not there.

Once the shrapnel is in the jar, it stays there and is not touched. 

 

I used this extra cash when I went away this summer and it came in handy. 

 

I don't really call it an emergency fund as I pay all my bills by direct debit and don't use credit in any form. 

My rule is , if I cannot pay for it, I don't purchase it.

( I think this is a good system and you don't have to fear the postman dropping unwanted bills through the letter box.) 

 

PS.

I also cannot take it with me when I go home  :clap:

(I will be given a military funeral so that is all taken care of, so an emergency fund for me is not that important. I am truly blessed.) 

 

 

Lol @ comment about saying you thought I might say that... Yes saving the change you spend can go a long way.

In the U.S. I've found credit is needed for most anything. Credit is needed to get a cell phone account, get a student loan, rent a house/apartment, get a mortgage with low interest, etc. Also without good credit when renting many places will request an extra months worth of rent (a deposit) to be on the safe side.

 

God bless,

GE

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Guest AFlameOfFire

 

I have done what GE has shared on that rounding up, in two years (on my side of things) verses the hubbies I was able to save over $2000. Like if something was $17.50 at the store I would round up to $20.00 because I stink at math but in doing that I have never bounced checks.

 

Another thing I do (off to the sly) is when the phone bill comes in, lets say its $53.00 I might pay $70 (depends). But I just over pay it. After doing that for a couple of years I always have a credit with them (and receive each forthcoming bill with owing zero) but shows them deducting from what I have a credit toward. And I just even that out now (adding no more to it) having that 6 months ahead. So just say I cant make one months payment, it just deducts what I have previously saved up in credit toward it.

 

And once one has been established ahead (for just say, an emergency fund, where the bills are paid) incase my husband gets injured at work and cant work, we have planned toward such a time and gives us so much borrowed time without being a burden on our families.

 

Then with that out of the way, start the next one very slowly.

 

Very nice Flame! So you use the Bank of America “Keep the Change” program Flame? $2000 on that program? Wow!

Yes, paying bills early is a good thing. That is a wonderful idea. ;) The only thing is you’re basically giving the companies extra money interest free correct? However, I can see where if you are say 6 months ahead on a bill that would be peace of mind if either of you were to lose or get hurt at your jobs. :thumbsup:

 

 

 

You know bro, I have only used that little program of my own accord because I am just so bad at math if I didn't over estimate I couldn't afford all my bounce charges LOL

 

But your right GE, I thought about the same thing, letting the company having our money (who can gain interest off yours) but its not like its some huge amount. And the peace of mind it brings me outweighs the couple of dollars. Only because if I have access to it, it could be one of those temptations to use it for something else. So I figure, the bills are paid (firstly) and that forces me to chose after the fact.

 

Because we don't really have anyone in our family we can turn to, they typically turn to us. And we thought, gees (after appraising the situation) if we were in any trouble (and don't prepare somewhat) we could neither help ourselves (or them) for that matter. And because most of them aren't ever in a position (of ability) to actually do so.

 

Well, one could, if they were financially responsible, but because that person spends it as soon as it comes in and leaves no room to take care for emergencies, she has a lot of designer purses, but if she needs a root canal (or something similar) comes crying she has no money.

 

Now THAT I somewhat resent (to be most truthful). But think she will part with her purses (and every other unneeded thing ) to take care of her need? (Which she actually has the ability to save towards?) That would be unthinkable (on her end). And so even though she might have the ability to be helpful (whether to herself or others), she refuses to prepare for emergencies to be so. Living far more for her desires and so really wouldn't be someone I could turn to. Well, I sure couldn't count her as someone I could call, or rely on (in any way) during a time of our need (if one should ever come). So I have a tendency to overcompensate there. Besides, And I get the feeling if I had to ask it that it wouldn't be done joyfully (but resentfully) and would never let you forget it either LOL

 

But just getting off that debt wheel was a welcome relief, even still, there are emergencies, we can prepare the best we can, but they are not always limited to the set amount we might prepare for (thus our little dilemma) I had ask for some prayer for. You would think being debt free and preparing to that extent might get you off the hook (at all times). It doesn't, but I just think, what if I didn't at all? It would be far worse, that's all.

Edited by AFlameOfFire
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Guest AFlameOfFire

 

We don't have credit cards, so we need to save for everything. I mean we have one with Home depot we keep at a zero balance. But when we ever use that we already have it in the account for whatever it is we will use it for. And so in that way do we keep our credit current (just in case its needed) and in good standing (but also avoiding interest rates/charges). So we sort of siphon the need through it and then payment to it (that month).

 

But even we didn't have enough to cover our last emergency (the roof) we would have needed 17 of GE's emergency funds LOL and then another 10 of them for the truck saving fund (we robbed) to pay for the roof.

 

If emergencies were only $1000 (half the time) that would be just wonderful. Because this year has been the worst of years for us.

 

We had lived in credit card debt in the past, and changed that habit, which frees you up so much in dropping that. Same with our vehicles, we drive them into the ground, all of our vehicles are nearly 15 years old. One has a rebuilt engine, the other needs one (soon). But I don't care, it sure beats carrying payments towards them (especially at one time). If we carried all three vehicles (brand new) they would cost us $1900 a month (combined). One because his Fed Ex ground truck was over $1200 (a month) to carry (until it would be paid off in 5 years) the corolla (was $300 a month) and His Ford Ranger ($400) and we were broke just trying to meet all of those. But in being loosed from them, a lot does go into repairs, but absolutely no-wheres near what it costed to carry all three of them monthly.

 

And so you can see how being freed of these (payments, which is inclusive of the interests on these loans) allows you to save up (interest free) toward the fullest payment of your next vehicle (even while you are still riding the others into the ground). Well, at least until you can replace it without carrying that payment (plus interest) load (on each combined)

 

I can see where not having credit cards can be a blessing. We use ours like debit cards and pay them off each month as if they’re debit cards. With a cash back rewards program (1-5%) we have an additional $500 in rewards in the last year or so. Something worthwhile to look into.

Really the $1000 is a starting point. I would personally recommend having 3-12 months income worth of savings in case of the loss of job, disability, etc. But to get to such an amount we got to start somewhere with a few baby steps. $1000 is that first baby step IMO ;)

 

As far as vehicles go the best thing I’ve found is to try to pay cash for a cheap vehicle say $1,000 to $2,000. Then pay yourself in your savings a monthly car payment of say $300-400 a month. Once that initial car is run into the ground say 12-16 months later buy a car with the money you saved up.

Both our van and our economy car (Civic) are paid off this way. We never want to have a car payment again. Rather pay ourselves than the bank interest ;)

God bless,

GE

 

 

 

Exactly GE, and we do have one credit card besides the home depot, the reason I don't count it is because its his business card. So all his gas, and repairs and cell phones (even between us) are paid through it. And at the end of every month its paid off.

 

And those reward points come in handy too. He can fly up to see his mom in PA with the flyer miles, but I am eyeballing a Dyson vacuum cleaner in that catalog with what he has already LOL

 

I think starting it up is the hardest because you hit emergencies as you go. And just start becoming glad its there, and then it just begins to build and then your like Cool! Then it becomes addicting (to live without the need to borrow) and then you begin to see all those accumulative payments (you owe) disappear (and the interest) and you seem to automatically stop overspending. Then you find you become frugal in other ways, and it becomes a lifestyle.

 

You know who taught me that? Is my next door neighbor (who was a bus driver believe it or not). She was a millionaire who lived right next door to me in my most poorest of days. She could buy a mansion in cash if she really wanted to (and just knowing she could was good enough for her). Me and her would go to the Amish country (back in PA) because we didn't live that far from it. And she would take $20 with her, but never once did she ever break that twenty.

 

Although there were a few home made dollar items you could tell were tempting her LOL

 

I said, your really nuts, its just a buck Mary!

 

She too had an old Toyota corolla (like me) and worked only so that she wouldnt go insane. And she canned all of her garden, lived frugally and made really frugal decisions (to the point of insanity) LOL

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i think it's important to call someone who knows how to deal with finances because that is where it alll begins. not just how much you are going to save up but someone who specializes in that area. we all need to remember that people who create wealth are the ones who have thought about how they were going to do it to begin with. 

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