Emergency Funds

June 21st, 2007

So…. I have read a lot of places how an emergency fund gives you peace of mind. When you have an emergency fund, those little things that crop up, you know you won’t have to charge anything and you feel mellow.

Okay, but.

I’ve resolved for several years now NEVER to charge anything. Ever. Ever. It is an option of course in dire circumstances but I’ve avoided it since I decided so far several years ago. Even through the birth of two kids and the purchase of a home.

I HATE touching the emergency fund. I feel all anxious until it is replaced. It makes me ill.

BUT. Maybe that is because previously our “emergency fund” was funds I had earmarked to start a college savings fund for our son. So touching it felt like it was taking away from “his” money — even though it was always replaced first priority.

Now that I’ve moved those earmarked funds to an ING savings account and have a separate “emergency fund” in our regular savings, I wonder if I will feel the same “ping” when I need to use any of it.

No more money coming in until June 29th so I have a feeling over the next 8 days I’ll get to see first hand ;).