Whether you have consumer debt or not, it is important to have an Emergency Fund. Ideally you should have 3 – 6 months of expenses put away in an accessible savings account, just in case! Even if you only have $1,000 in an Emergency Fund, sooner or later you will be glad you have it!
2012 is starting off as an expensive year for us! First my husband’s truck needed a new exhaust system and catalytic converter. We were glad to have an Emergency Fund when we received the $340 bill! Its hard to part with the money, but that is why it is there, for an emergency!
Well this week, our furnace started acting up again. When we bought our house 4 years ago, we were warned it was a 20 year old furnace on its last leg! Somehow its last leg has lasted us more than 4 years. We considered us lucky. Yesterday morning (when it was 20 degrees out) the furnace was “coughing” as our favorite furnace repairman told us. He was able to clean it out for $80, but on his way out he gave us the news. Your furnace is going to go at anytime; there are no replacement parts available. He provided us the nice estimate of $2,800 for a whole new 95% efficient furnace and told us to call him when we were ready!
So it looks like we will be dipping in the Emergency Fund again in February to have a new furnace installed. When it rains, it pours! Here’s to a cheaper 2012!