I'll be the first to admit that building your emergency fund can be a bumpy road, but I definitely think it's worth the work. Stop by and see why!

One of our goals this year is to fully fund our emergency fund. We almost had it fully funded a few years ago but had to use nearly all of it for, well, a huge emergency! Boy were we glad we had that money tucked away.

For newbies, an emergency fund is when you save 3-6 months of living expenses. If you unexpectedly lose your job, are injured, or have any other number of emergencies, you’ll have the money to get you through that difficult time.

Tuck your emergency fund away in a savings account and don’t touch it unless it’s absolutely necessary!

If you have debt, Dave Ramsey recommends having a starter emergency fund of $1,000, paying off your debt, and then fully funding your emergency fund.

emergency fund

I’ll be the first to admit that building an emergency fund can be a bumpy road. One day it’s smooth sailing and then the next day the air conditioner goes out (or any number of things). On one hand you’re thankful you have the money to pay cash to fix your air conditioner, but on the other hand you’re frustrated that your emergency fund is empty and you have to start all over. Trust me, I’ve been there!

Even though building your emergency fund can be a bumpy road, I’m here to tell you that it is worth all the work! 

Why? I’m glad you asked!

1. You stay out of debt, or don’t go further in debt.
Just think about it. Prior to having an emergency fund, what did you do when you had an emergency? If you’re like most Americans, you borrowed the money or put it on your credit card. When you have an emergency fund in place, you no longer have to do that! (Plus, think of all the interest you’re not having to pay!)

2. You think outside the box.
When an emergency rolls around you can either use your emergency fund, or you can get creative and come up with a different solution to fix your problem. (There are times when you have no other choice but to use your emergency fund.) If you’re like us, you’ll do everything in your power to keep that money in the bank.

3. You have peace of mind.
Whether you have $100 or $10,000 in your emergency fund, knowing that money is there for emergencies gives peace of mind. As a woman, that is huge for me!

coins in a jar

No matter where you are on your journey of building your emergency fund, I want to encourage you to stay the course. All of your hard work will be worth it!

Why do you think emergency funds are worth the work? (Please share in the comments.)

Photo Credit: Tax Credits (added title text box and ThriftyTsTreasures.com to original photo); Simon Cunningham; Tom Small  cc