No Emergency Fund

Day 13| Paid: $1150.36 | Remaining Debt: $61998.08

In case you haven’t noticed I have not yet talked about my emergency fund. That is because I don’t have one. In fact I don’t have any kind of cash savings. I am one of those millions of Americans who couldn’t afford a $1000 or $500 emergency right now if it occurred.

This is probably one of the biggest reasons why I have continued to get deeper into debt. I run into issues, use any cash I have on hand, take out a loan or use credit, get late on other payments, and just keep spiraling down into debt.

One of the best things I can do, that anyone can do, is establish an emergency fund. Even if its just a small one.

There is no way I can build up a 3-6 month emergency fund and also get rid of this debt. The math just does not work out. Plus I think that it is financially irresponsible to be saving up thousands of dollars why I am paying ridiculous interest rates on loans. But I do think it is reasonable to try to build up a small $1000 emergency fund, as well try to build up an additional cash reserve equal to my weekly paycheck so I am not getting my balance down to, or below, $0 each Tuesday before I get paid.

I have two other expenses coming up soon that I have not mentioned yet, and really are not budgeted for anywhere.

First is an AirBnB payment for a small apartment I am renting the first week of February in the mountains. I haven’t taken a vacation since July and desperately need one. So I am going to take a week to do a few days of skiing, snowboarding, hiking, and snowshoeing. I already prepaid the lift tickets and any equipment rental back in November, as well as the deposit for the apartment. However I still need to pay the remaining $565 for the apartment rental. It was by far the best deal on lodging I could find, and even though this trip doesn’t match up with my financial goals I do need it for my own mental health.

The other expense coming up soon is an engagement ring. I don’t know the details on how much it will cost, and I don’t have an exact timeframe or plan on proposing. But I know I am going to do it in the next few months. My girlfriend and I have talked about it and its about time it happened. That will obviously throw a wrench in my plan but where I am in my life there will never be a ‘right time’ for things, so I am going to find a way to make it work.

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