Darn it! Time to think about an EF (emergency fund)

Quick blog: Over the last couple weekends, I have (once again) increased my bad-debt-to-income ratio. Up 2%.

This is due to a few factors:

  • school tuition due of $795 – so perhaps this is good debt, but I included it in my increase because it was charged on my CC with 12% interest and not charged against a student loan at 3.25% – 6%. So, in my book this fits in the mediocre category.
  • Then, a series of mishaps equalling $595 – which, should have been covered under an emergency fund if I had one larger than $75 in it. We went over budget this week by $115 ish (don’t take the husband grocery shopping because he thinks money is expendable), the pump blew out in the pond, etc…

And then coming up this month I still have school shopping for 2 kids (one is a teenager). But, I have a plan of attack – it will momentarily increase my percentage, but quickly decrease because I am working overtime at work to cover that bill. Overtime, I am hoping will continue a bit more to knock down some of these bills…like the $1390 or 2% increase that I occured.

So, even though I knew this was going to be a bumpy ride…one, I feel guilty for bringing up 2%…it may not be all that bad when the overtime check comes in to clear up and set me back down to 80% (or lower). 80%??? ghastly!

But, the lesson to my family is… it is probably very wise to build an emergency fund of, at least, $2000. Any idea how to do this while trying to snowball the debt down???

2 thoughts on “Darn it! Time to think about an EF (emergency fund)

  1. Greentreeweb

    Yay for overtime! Keep on keeping on.

    If you have direct deposit that can be split over multiple accounts maybe you could have 20 bucks per paycheck direct deposit to a separate e-fund. Or whatever amount you won’t miss too much..

    Ok, starting to feel like a blog stalker..haha.

  2. Money Funk

    Ha! ha! That’s okay, I like to be blogged stalked.:)

    As for OT, I am gonna keep trying to crank it out w/out it becoming a slave to it.

    Direct deposit is very useful. Isn’t it? I already stash $35 per paycheck into my summer account. By the way, my mattress is great! heehee(of course, after the drama…I traded it for a different brand. was totally unhappy with the first one!)

    But, that is my summer account. You are right, I think I will start stashing a small amount into a seperate account (which I don’t see the balance everday) to build an ER fund. Thanks for the thought. 🙂

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