Everyone knows that life is neither fair nor certain. It throws you curve balls at nearly every turn, and when those obstacles involve finances, they can cause you even more headaches. There is nothing worse than when an emergency pops up, and you don't have the money available to cover the unexpected expenses. My husband and I have faced this more times than I care to remember, which prompted us to start an emergency savings account. This is how our emergency savings got us through a difficult financial time.
In early July 2012, the outside temperatures reached near 110 degrees each day for nearly a week. During that week there were days when our air conditioning unit didn't shut off for hours on end. Not only did that wreak havoc on our electricity bill, but also on the AC unit itself. Around day four of the extreme temperatures the fan was blowing, but no cold air was coming out. We confirmed the unit was no longer working and contacted a service company.
How much it cost
We were lucky that we were able to find an AC repair man to come the same day they unit went out; however, it wasn't cheap. After all the work was complete, and the total was tallied, we owed a little over $250 in repair and labor fees. It would have been more, but we declined several other services the company offered.
What we would have done without the savings
If we didn't have an emergency savings, we would have been in big trouble. We had several other options, but none that were ideal. For starters, we could have pulled money from our future savings, but that isn't money we like to touch. We could have used money that was budgeted for other things, however, that would have left us in the same place: needing money. Lastly, we could have used a credit card, but as everyone knows that would mean interest rates and monthly payments. All of these would have done the job, but it's definitely nice to have money set aside for things like this.
In this case our emergency savings got us through a difficult financial time. I'm thankful we had the money on hand, and have already started to replenish the funds. I'm hopeful we will not have to use this money again any time soon, but as new homeowners I'm sure that's not likely to happen.
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