Sunday, September 7, 2008

Goal 2: Create an Emergency Fund

I realized much of my initial credit card debt would not have been incurred had I planned properly and had an emergency fund in place. I have recently opened up an account on ING Direct to save for travel, and think I will start my emergency fund through them as well. Since the money is not easily accessible, it will be out of sight and out of mind. I think an initial goal of $1000 dollars for my emergency fund will be a good starting point. It is enough to fly me home on short notice, to pay the car insurance deductible, to make a mortgage payment on my bf's townhouse, to get an apartment if needed, and to pay the medical insurance deductible in case anything major happens to me. Ideally, I would like to have more saved, but would prefer to get my debt paid off first.

1 comment:

kPg said...

Gosh, it's so hard to put up your own emergency fund, right? You have to have the right amount of discipline to be consistent with your contributions, and your reasons for building the fund should be enough to keep you motivated. Is it advisable to start small when putting up an emergency fund? And by small, I mean saving up your loose change and stuff like that. Well, that's what I'm gonna do for now.