Emergency fund saves the day

Life is unpredictable. My daughter unexpectedly had two teeth removed by an oral surgeon this week. When I learned that our dental insurance wasn’t going to cover $501.02, I didn’t panic. Instead, I paid the bill and felt a sense of peace. My emergency fund made an unexpected expense a non-issue.


Emergency funds and other Ramseyisms have been on my brain lately. I haven’t read The Total Money Makeover by Dave Ramsey, but I’m reading the cliff notes. Cliff notes? Yes, I’m reading Trent Hamm’s excellent twelve part series on The Total Money Makeover.

Highlights from Trent’s series:

  • Personal finance is 80% behavior and 20% head knowledge. Look at your behaviors and make changes.
  • Live hard now and you’ll live easy later 
  • You are the problem with your money 
  • Debt is “bad” – outside of a home mortgage
  • Take baby steps, but start today
  • Write down your goals
  • Get current with all your bills
  • Save $1000 cash as a starter emergency fund
  • Pay back your debts from the smallest balance to the largest
  • It’s easy to become wealthy if you don’t have payments
  • A fully funded emergency fund should cover 3-6 months of expenses
  • Your emergency fund should be liquid; savings account or money market
  • A big emergency fund means life-altering events will be merely inconvenient

Trent just published part eight in his twelve part Total Money Makeover series. Do you want to change your behavior around money? Check out The Simple Dollar; Trent’s personal finance blog. I read it every day.

Do you have an emergency fund or are you building one? Please leave a Comment.

One comment

  1. Hi Kate!

    I stumbled upon your blog the other day after hearing about it a few times and definitely bookmarked it. You’ve got some great writing chops :) I also just killed a half hour reading some Simple Dollar posts. Very nifty. Thanks for sharing!

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