Spacefem (spacefem) wrote,

emergency savings funds are boring

Since I read all those financial books last year I re-arranged our budget and we've done a better job building up the savings account. Well, that, plus a raise, and marc doing lots of contract work, and my etsy business is just clipping right along... anyway, yes, I feel much better about our situation.

Savings accounts are boring though.

Well, or in general maybe I'm just questioning things. The books say to save up an emergency fund of 3-6 months expenses but that seems like a shload of money just to have in a .00002% interest rate CD or whatever the crap is you can get now.

We need to buy a car next year. Like, not just for fun, we actually need a bigger car to fit growing Josie and her growing carseat, what we have is just not practical. I've asked Marc to at least deal with the situation until we can file our tax returns because that can be a surprising gain or loss, but after that I'm curious on what to spend on the car... we'll need a loan for the rest. Do I keep our savings tied up because zomg we need all this emergency fund money because we do, or do I put more of it towards a down payment so we're not in debt? We'll be buying a used car, and sure the older you buy the less it costs, but that's life that you're not getting out of the car because they all have a finite number of years in them.

I also wish I was throwing more money at my home mortgage, since we just bought the house three years ago the overwhelming majority of our monthly payment goes to NOTHING. We'll never get anywhere on the principle if I don't send more dedicated extra cash in that direction.

I wonder if, once you have a couple grand in an emergency fund, getting ahead on your mortgage also "counts"? After all, if I lost my job I like to think I could call up the bank and say "hey, the money I owe every month is not related anymore to the total of my loan, how about you give me a break?"

I've looked at the "emergencies" that people say emergency funds are for, the biggest expenses for us would be unexpected car repairs, appliance replacement, vet bills... all stuff that's typically $1000-$3000. Not SIX MONTHS OF EXPENSES. And I have a separate CD set aside for job loss, which would be unlikely but I think traumatic no matter what. It just doesn't seem likely enough that we should be throwing every penny at an emergency fund to deal with it, when we could be paying off our house or making a better down payment on our car.

Does that make sense?

I'm wondering if I know my situation better than those financial experts who say you have to have this giant pile of cash someplace meaningless.
Tags: finance
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