Monday, March 17, 2008

In Case of an Emergency

My wife and I are happy with the progress we've made since enrolling in Financial Peace University. In the last 60 days we have saved $1,000 into a short term emergency fund and paid off $1,700 in debt above the minimum payments. We're excited too that this week we'll knock off another small outstanding debt in the amount of $560. To us our movement is a really big deal - 60 days ago my attitude was hopeless.

What happens if we have to dip into the $1,000 Emergency fund?

The plan is to replenish the fund as fast as possible. How? We'll stop over funding our debt snowball until the emergency fund is back to $1,000. Right now we're applying $485 per month toward the debt snowball, so if we had to clean out the fund, we'd be back in good shape very shortly. This is our immediate plan at least.

With four children, an older home, and greater than ten year old cars I want a better emergency plan. I am toying with the idea of building the fund by at least another $1,000 and then resuming the debt snowball over funding. I'm thinking.

1 comment:

Carla said...

Having financial choices is very nice indeed!