Comments on: Dipping into the Emergency Fund Sucks http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/ Over Five Years of Personal Finance, Consumer Spending, Crazy Products and Boring Blog Posts. Good grief. Sat, 11 Feb 2012 21:36:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Moneymonk http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-138740 Moneymonk Mon, 10 Mar 2008 19:49:54 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-138740 look at it this way, some people do not have an emergency acct TO dip in. I rather have a cash buffer than reaching for a credit card look at it this way, some people do not have an emergency acct TO dip in. I rather have a cash buffer than reaching for a credit card

]]> By: Debbie http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-137886 Debbie Tue, 26 Feb 2008 14:54:22 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-137886 I have an emergency fund started, it will cover approximately 1 month of living expenses including bills. I often vasilate between paying down a credit card or saving for an actual emergency, in the end my mind rationalizes that paying down the credit card bill and then having an emergency puts me right back in the same old spot. The last time I had an emergency I did not have any 'fall back' money and ran up my credit card debt. Saving is always always important. I know, been there and still working on the solutions. I have an emergency fund started, it will cover approximately 1 month of living expenses including bills. I often vasilate between paying down a credit card or saving for an actual emergency, in the end my mind rationalizes that paying down the credit card bill and then having an emergency puts me right back in the same old spot. The last time I had an emergency I did not have any ‘fall back’ money and ran up my credit card debt. Saving is always always important. I know, been there and still working on the solutions.

]]> By: emilyg http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-137868 emilyg Mon, 25 Feb 2008 16:02:43 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-137868 It's definitely important to have an emergency fund that you leave alone. I graduated college in May and drained most of my savings while trying to find a job. Now that I've had one for a few months, I've been trying to build my savings back up in case I find myself out of a job for a few months or something disastrous happens. Every once in a while I'm tempted to use it for a vacation or a new TV, but I have to just force myself to pretend that that money doesn't exist. I recently started a new high-yield savings account with ING Direct for fun money, like vacations. Hopefully having a separate savings account for emergency funds and long-term fun stuff will help. It’s definitely important to have an emergency fund that you leave alone. I graduated college in May and drained most of my savings while trying to find a job. Now that I’ve had one for a few months, I’ve been trying to build my savings back up in case I find myself out of a job for a few months or something disastrous happens. Every once in a while I’m tempted to use it for a vacation or a new TV, but I have to just force myself to pretend that that money doesn’t exist. I recently started a new high-yield savings account with ING Direct for fun money, like vacations. Hopefully having a separate savings account for emergency funds and long-term fun stuff will help.

]]> By: Jodi http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-137687 Jodi Tue, 19 Feb 2008 12:40:35 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-137687 Stupid tax? I read Dave Ramsey's book, and I listen to his podcast everyday. We all pay that tax, some more than others. But if there is not a sufficient emergency fund for 3-6 months (after all debt is pd off) we'll keep paying the stupid tax w/ cc's and "great" finance offers for dumb things like cars and furniture. (I won't say "cheers" here cause I'm not drinking an alcoholic beverage.) :) Stupid tax? I read Dave Ramsey’s book, and I listen to his podcast everyday. We all pay that tax, some more than others. But if there is not a sufficient emergency fund for 3-6 months (after all debt is pd off) we’ll keep paying the stupid tax w/ cc’s and “great” finance offers for dumb things like cars and furniture.
(I won’t say “cheers” here cause I’m not drinking an alcoholic beverage.) :)

]]> By: Wylie http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-137462 Wylie Sun, 17 Feb 2008 16:11:04 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-137462 You say: "situation above doesn’t really qualify it as an emergency. oh well, I haven’t paid finance charges in years and I’m not about to start now." Missing payments on credit cards can sock you with finance charges AND it can also hit your credit rating, which can impact your ability to get cheap credit in the future. It may not be a personal emergency, but it is not unreasonable to call it a financial emergency. I know what you mean about wanting a fund to cover a specific time period of living expenses in case something more severe happens. Maybe adding $1000 to your emergency fund as a buffer would help you feel better about using it to ensure you can handle financial surprises and "emergencies" at the same time. Best, Wylie You say: “situation above doesn’t really qualify it as an emergency. oh well, I haven’t paid finance charges in years and I’m not about to start now.”

Missing payments on credit cards can sock you with finance charges AND it can also hit your credit rating, which can impact your ability to get cheap credit in the future. It may not be a personal emergency, but it is not unreasonable to call it a financial emergency.

I know what you mean about wanting a fund to cover a specific time period of living expenses in case something more severe happens. Maybe adding $1000 to your emergency fund as a buffer would help you feel better about using it to ensure you can handle financial surprises and “emergencies” at the same time.

Best,

Wylie

]]> By: monsterme http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-137214 monsterme Fri, 15 Feb 2008 20:41:43 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-137214 No, you should feel good. You got to use your "insurance policy" that you have money set aside for that sits idly by while you live your life. As far as not managing your cashflow well -- you are probably being too hard on yourself. Everyone overspends sometimes -- and we cover ourselves with "slush" money that we keep around. You only have an emergency fund, I guess, so it's playing double-duty to your slush fund purposes. Sometimes we go over our planned expenses -- and in a way that's good -- it proves you are actually living and having some fun. And, so then you'll have to add back to your emergency fund later -- no big deal. No, you should feel good. You got to use your “insurance policy” that you have money set aside for that sits idly by while you live your life. As far as not managing your cashflow well — you are probably being too hard on yourself. Everyone overspends sometimes — and we cover ourselves with “slush” money that we keep around. You only have an emergency fund, I guess, so it’s playing double-duty to your slush fund purposes. Sometimes we go over our planned expenses — and in a way that’s good — it proves you are actually living and having some fun. And, so then you’ll have to add back to your emergency fund later — no big deal.

]]> By: Jerry http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-136708 Jerry Wed, 13 Feb 2008 00:54:16 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-136708 Emergency/Oh-Crap Funds are the best, and they ARE there to help if there is an emergent situation, but yeah - it leads to a little better self esteem when it's a "legitimate" problem. I mean, a shortfall is a shortfall, but the fund is intended as a form of insurance for things that matter... not for things we jacked up on our own. (I'm speaking from my own experience, here, not casting stones. My house is plenty glass in this regard, unfortunately!) Thanks for the blog, and the honest and frank information. Jerry Emergency/Oh-Crap Funds are the best, and they ARE there to help if there is an emergent situation, but yeah – it leads to a little better self esteem when it’s a “legitimate” problem. I mean, a shortfall is a shortfall, but the fund is intended as a form of insurance for things that matter… not for things we jacked up on our own. (I’m speaking from my own experience, here, not casting stones. My house is plenty glass in this regard, unfortunately!) Thanks for the blog, and the honest and frank information.
Jerry

]]> By: Cap http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-136693 Cap Tue, 12 Feb 2008 22:29:36 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-136693 tsk tsk! forgot to mention, situation above doesn't really qualify it as an emergency. oh well, I haven't paid finance charges in years and I'm not about to start now. tsk tsk!

forgot to mention, situation above doesn’t really qualify it as an emergency. oh well, I haven’t paid finance charges in years and I’m not about to start now.

]]> By: Mike http://www.stopbuyingcrap.com/personal-finance/dipping-into-the-emergency-fund-sucks/comment-page-1/#comment-136686 Mike Tue, 12 Feb 2008 21:12:00 +0000 http://www.stopbuyingcrap.com/2008/02/12/dipping-into-the-emergency-fund-sucks/#comment-136686 a) this should be "Oh crap I just got fired because I kept reading finance websites forums and blogs on the job" b) that's why another guy who I read calls it "Stupid Tax" a) this should be “Oh crap I just got fired because I kept reading finance websites forums and blogs on the job”
b) that’s why another guy who I read calls it “Stupid Tax”

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