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Should I Save Up an Emergency Fund?

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I have been reading over and over about the benefits of saving up an emergency fund. And, a well-known author I’ve just recently looked into suggests saving up $1,000 even before you start agressively paying down debt.

I had $1,000 extra that I used to pay down credit card #2. Now I read that I should have kept it for an emergency fund?

I do not have an emergency fund and have never had one. I am living paycheck to paycheck (although there is a little more leeway now) and any emergencies that have arisen have been financed by my credit cards. When our fridge needed to be replaced, it went on the credit card. When we needed a new door, it went on the credit card. Sure, the debt was increasing, but there was no leeway back then to even think of having an emergency fund.

I just think it is more logical (for me) to forgo the emergency fund and pay down the credit cards. An emergency is just that – an emergency. You never know when, or if, it can happen. Why should I let $1,000 sit on my credit card at 16.9% interest when I have $1,000 sitting around doing nothing except waiting for an emergency?

One day, I will have an emergency fund, but I just cannot justify in my mind why I should have one at this point in my life. My financial situation just doesn’t warrant it, and I think what it boils down to is that we all have to do what is right for our financial situation. Just because everyone is doing it or there is a high-profile person promoting it – doesn’t mean that it is right for you.

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