Our Emergency Fund is Fully Funded

We recently received a minor windfall when we surrendered a whole life insurance policy. The timing of that check ($1,300) enabled us to hit the halfway mark with our debt. For the past few days I have been debating what to do with the rest of it.

I finally decided to go ahead and use some of it to increase the amount in our emergency fund to $2,500. That was the amount that we were aiming to have in there some time ago, but we never made that goal. For now, we will leave our emergency fund at $2,500 and concentrate 100% on paying down our debt.

There is still some money left from the insurance check. My son’s recent unexpected visit to the doctor gobbled some of it up (he’s okay – the doctor thinks he caught a bad bug going around). We will probably put a few hundred more towards our credit card debt and keep the rest around for a little bit. That will give us some breathing room for Christmas-time.

I still can’t believe that we actually have thousands of dollars in the bank at this very moment. I can get used to having money stashed away like that. It gives you a sense of security knowing it is there if you need it.

Posted by Tricia on November 28, 2007 at 7:33 AM in Saving Money | 18 Comments »
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Matt responded:
Posted: November 28th, 2007 at 8:56 am
Congrats Tricia! I’m still setting aside my $50 a pay but I’m no where near my goal. As always you’re an inspiration to people like me.
paidtwice responded:
Posted: November 28th, 2007 at 8:57 am
Congrats! That must be an awesome feeling! Way to go!!
thisisbeth responded:
Posted: November 28th, 2007 at 9:58 am
Wow–congratulations on reaching that goal! That’s quite the accomplishment!
FinanceAndFat responded:
Posted: November 28th, 2007 at 10:15 am
Congrats! I’m still hovering around the $1,000 mark with my emergency fund, though slowly building it. Well done!
Jen responded:
Posted: November 28th, 2007 at 11:09 am
Excellent! Just as we have unexpected expenses, we sometimes have unexpected windfalls. I think you made a good decision with the insurance check.

Half your debt is paid, and now you have an emergency fund – you’ve come a long way! You should take a moment and sit and enjoy the feeling
arduous responded:
Posted: November 28th, 2007 at 12:11 pm
yay for savings! what a great way to end the year.
10KPortfolio responded:
Posted: November 28th, 2007 at 1:06 pm
Congratulations! It is nice to know there is always a cushion.
Mrs. Micah responded:
Posted: November 28th, 2007 at 1:48 pm
That’s great! And having extra money for Christmas too–perfect.
Chief Family Officer responded:
Posted: November 28th, 2007 at 4:34 pm
Congratulations, Tricia! Have fun with the extra money – that’s important too!
Jim ~ mydebtblog.com responded:
Posted: November 28th, 2007 at 4:41 pm
Good deal to have that extra money around. I have a hard enough time trying not to think about my 1k EF for things we should cash flow.
SingleGuyMoney responded:
Posted: November 28th, 2007 at 6:50 pm
Congrats Tricia! As Jen said, it usually unexpected expenses that pop up but the unexpected windfalls are GREAT. It’s also good that you put it to good use.
JW Thornhill responded:
Posted: November 28th, 2007 at 9:54 pm
Woo Hoo!!!

You are truly an inspiration to me! Three or Four months from now I hope to do the same.

Congratulations
Heather responded:
Posted: November 29th, 2007 at 7:35 pm
That is Wonderful news! Congrats
tiredofbeingbroke responded:
Posted: November 29th, 2007 at 7:51 pm
There was an article on MSN Money a few months ago that said ‘why everyone needs to have $500 in the bank’. A small stash a.k.a the emergency fund makes it easier to sleep at night.

Congrats on the accomplishment.
Good Financial Advice Links | 10KPortfolio responded:
Posted: December 1st, 2007 at 3:06 pm
[...] Blogging Away Debt has fully funded their emergency fund. [...]
Ryan S. responded:
Posted: December 4th, 2007 at 1:28 am
Tricia, that’s gotta be a great feeling of accomplishment to get that emergency fund fully funded! I’m still debating what I consider a fully funded emergency fund myself… I have more than six months in there now, but I’m not sure if cutting that down a bit would be wise.
No Christmas Tree For Us? Plus - A Stroll Through My Blogroll responded:
Posted: December 4th, 2007 at 10:27 am
[...] Dawn, from Blogging Away Debt, has her $1000 emergency fund!Â You rock! [...]
Net Worth Update - Up 6.91% » Blogging Away Debt responded:
Posted: December 8th, 2007 at 9:53 am
[...] was a great month for our Net Worth. With fully funding our emergency fund and paying off half of our credit card debt, this month ended up being our biggest net worth [...]