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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.


  • Reply Matt |

    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.

  • Reply Jen |

    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 πŸ™‚

  • Reply Jim ~ mydebtblog.com |

    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.

  • Reply SingleGuyMoney |

    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.

  • Reply tiredofbeingbroke |

    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.

  • Reply Ryan S. |

    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.

So, what do you think ?