Tuesday, March 2, 2010

Why it Pays to have an Emergency Fund… A Real-Life Example

Personal finance gurus all have their own style and top tips they share with their readers and listeners. Suze Orman offers lessons to “control your destiny” while Dave Ramsey asks people to attack their debt with “gazelle-like intensity.” The one thing Orman, Ramsey and many others have in common: preaching the importance of an emergency fund. Thanks to OurSusu.com, I have built up my emergency fund. A recent car accident proved to me how much easier my life is when I have money in the bank to pay for life’s unexpected events.

Ten years ago, I was just out of college and definitely not thinking about savings. Being in a fender-bender at that time was devastating financially. I didn’t have the money to pay for the deductible so I had to pay for the repairs with a credit card. Since I was just starting out in life, I didn’t even have a credit card with a high enough balance to pay for it so I used two credit cards. You can see how easily things can spiral out of control.

Fast forward ten years. I’ve paid down my debt and have an emergency fund. When I was rear-ended by a careless driver, I was upset about my car but not stressed about how I would pay for the repairs. Since I had an emergency fund, the accident turned out to be a minor inconvenience. It’s tempting to raid the emergency fund for that new plasma screen TV or a vacation I supposedly NEED, but the financial security I feel from having the money I need if a real emergency happens keeps me from giving in to temptation.

If you have trouble saving, I encourage you to use OurSusu.com to set up an emergency fund Susu. You never know when an emergency will happen, but at least you’ll have the money to pay for it. One less thing to be stressed out about is truly priceless.

Emergency Fund Susu Member

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