butler.shane•22d agoMost Upvoted

TIL my "emergency fund" wasn't an emergency fund at all

Kept $500 in my checking account for emergencies but my car's transmission died last month in Austin and that barely covered the tow. Turns out real budgeting people say you need 3-6 months of expenses. Threw my whole plan off when the mechanic quoted me $2,800. Anyone else make this mistake when they first started budgeting?

3 comments

3 Comments

anthony98922d ago

Same thing happened to me except it was my water heater that crapped out all at once. Thought my $800 buffer was solid but that barely made a dent in the replacement cost. Really opened my eyes to how fast one big repair can sink your whole system when you're not ready for it.

campbell.nora22d ago

My buddy just had his furnace die in the middle of winter, cost him almost two grand to get a new one put in before his pipes froze solid.

karen_sanchez1017d ago

A buddy of mine had something almost identical happen with his water heater last December. Thought he was good with a $1,200 emergency fund and then the whole thing flooded his basement too. Ended up needing a new unit plus drywall work, wiped out his savings completely. Really makes you realize how little breathing room most of us actually have.