Comments on: Emergency Guilt

By: Counting My Pennies » October Net Worth Update (-5.2%)

Counting My Pennies » October Net Worth Update (-5.2%) — Mon, 03 Nov 2008 10:04:23 +0000

[...] starting up a second emergency fund, thanks to the suggestions in the comments to my post on emergency fund guilt. This one’s going to be for those unexpected expenses that pop up – like inexpensive car [...]

By: CindyS

CindyS — Sat, 01 Nov 2008 14:57:52 +0000

I think that for me it’s a combination of knowing how hard I worked to save that small nest egg combined with a good dose of guilt for having an emergency anyway. If it weren’t for the guilt, I might have dipped into it more often. It’s the only time that I can think where guilt is actually a good thing.

By: karla (threadbndr)

karla (threadbndr) — Wed, 29 Oct 2008 22:05:56 +0000

I get around this by using a ‘multiple e fund’ model.

“OMG, I lost my job” – laddered CDs (about 4 months wages, 6 months expenses – fully funded and letting them roll and increase in value)

“Insurance Deductible” – in a savings account linked to my checking, one click access – exactly what it sounds like – fully funded and I siphon off the interest every quarter into other expense categories

“Dead Car Fund” – in ING – for unscheduled repairs (not maintence) or replacement – about halfway to a new to me car, purchase scheduled in late 2010 when my current car will be 10 years old. If it’s still running, I’ll get a nicer car once it’s dead – funding this one monthly as an auto deduct ‘car payment’

“House Fund” – in ING – for appliance replacement, house repairs and upgrades – since my mortgage is paid (YEAH!!!!), I’ve been paying an amount aprox equal to 1% of my house’ values into this fund each year (but it comes out of my budget monthly). I want to increase this as this fund is close to zero right now – but I have a new washing machine being delivered next week!)

By escrowing a seperate car and house fund, I don’t have the guilt of touching the E fund for those expenses. We all know that those kinds of expenses are coming, so they are not REALLY emergencies, after all. We need to put money aside for them.

By: Fabulously Broke

Fabulously Broke — Tue, 28 Oct 2008 20:25:34 +0000

You are so cute!

I do the same thing as well, but less to an extent as you do about feeling the guilt…

I don’t feel guilty using it. I treat it like an FSA, like SingleGuyMoney.

By: SingleGuyMoney

SingleGuyMoney — Tue, 28 Oct 2008 01:17:31 +0000

I had the same problem when I needed to use my Emergency Fund so I set aside a smaller savings account. I call it my Flexible Savings Account.

By: asgreen

asgreen — Mon, 27 Oct 2008 19:46:33 +0000

I plan on doing the same thing! I’m going to create a smaller fund to use when I go over budget, so I can save my emergency fund for and emergency that equals no income.

By: MrsMoney

MrsMoney — Mon, 27 Oct 2008 16:26:14 +0000

I always feel guilty when I dip into mine. I have been keeping a padding in our checking account, but I’m afraid I’ll have to spend some of that on my recent surgery. It sucks! I hate spending money.