(For other posts in this series, check out Credit Card Debt and Why I have $45 to eat off for the rest of the month.)
When I decided to get serious about this “getting out of debt” thing, I Googled Dave Ramsey like a creeper stalking a celebrity. I decided to participate in Financial Peace University the poor person’s way: by checking out the book from the library and listening to the audiobooks from where my mom took the class a few years back.
I remembered hearing all of the baby steps, but I’ll admit, I wasn’t really paying attention. Baby Step #1 is to save up $1000 in case of an emergency. I decided “Oh no, I’d rather pay off my credit card.” So I began the process of throwing all extra cash to my credit card.
And then, one night, I had the worst nightmare. I dreamed I had lost my job. Where this nightmare came from, God only knows. I don’t think I’m in danger of losing my job and I certainly don’t plan on leaving. In the dream, I remember absolutely sick over the thought of not having any income with nearly $500 a month in absolutely necessary expenses.
One one rainy Monday morning, I popped in an FPU audiobook on the hour-long drive to work. Which baby step did they talk about? #1 of course. As I listened, I decided that I would follow Dave’s advice and put $1000 into savings, just in case I needed it.
I’m happy to announce, that as of May 2nd, I have completed Baby Step #1! Two months of expenses are sitting in the bank, God forbid I need them. Dave mentioned that an emergency fund is “Murphy repellent” — you know, Murphy as in Murphy’s law. Let’s hope so!
Do you have an emergency fund?