This morning I got all ready for work and completed my normal routine. I put my work bag in the car, put the trash can away, and started to back out of the driveway in my 12-year-old car.
went years without having any money in my savings account. I wasn’t in debt but I spent what I made. If there was an “emergency” that occurred such as my refrigerator or vehicle breaking, I had to put it on a credit card.
I spent the next few months paying off the credit card. If I had another unexpected purchase during that time, I would put that on the credit card as well and increase the balance. This was “normal” to me. Years later I now understand the necessity to have an emergency fund.
An emergency fund is a separate bank account you have that is only used for emergencies. It is a fund that sits dormant in the bank and is only used if you are in a crisis that needs money to fix.