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Posts tagged with: Emergency Fund

And there goes the EF…

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I mentioned in one of my recent posts that I had to travel a good deal last week. Little could I have predicted what that would lead too.

As I returned home last Sunday, I was involved in a wreck, rear ending the car in front of me. I left the scene questioning God as to why me?

Tow hitches, even when barely hit, cause a lot of damage!

Not 10 miles down the road, I encountered the devastation of the tornadoes that ran rampant through Alabama. If I had not had that wreck, I would most certainly have been in the middle of the storm that killed so many.

This was an airport just a few minutes before I drove up.

As it was my 5 hour trip home, took me 8 hours due to downed power lines, jet fuel on the highway closing it down and having to feel my way through the back roads. But I am grateful. So many people lost everything, even their lives and their loved ones during these storms.

While I was out of town, I was notified that my Grandmother had been admitted to the hospital. So I stopped at the hospital on my way home from my trip and ended up spending a couple of nights there with her. She is fine, back home now. But it was a scary time.

It has been a tough week. I even gave myself a mental health day on Wednesday just to catch up on my sleep and de-stress a bit. I am so glad it is Friday and I have no big plans this weekend. And then I realized that we lose an hour of sleep this weekend as the time changes. Come on!

I hope your week has been better than mine. But through all of this, I am grateful for full coverage insurance on my car, an EF to cover my deductible and kids who are responsible enough to handle things at home when I have to be away.

I promise to get on top of my finance review and plan next week!

 


Plan #5: Emergency Fund & Credit Card

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After I spent of the bulk of last year getting back on my feet and establishing a healthy savings account, I began to diligently tackle my debt again. Creating mini-plans really worked for me.

You can see those plans here:

Now it’s time for a new plan.

Plan #5 Details

I appreciate your comments on my recent debt update. I felt really good about where I am right now after that update. Posting here so regularly is really helping keep me accountable and on track!

With that being said, I am ready to focus on my next mini-plan. It is two-fold.

Pay off Self Lender

With a balance due of just $291, one good month of income will have it settled. And because Self Lender is essentially a savings account, I will receive a minimum of $1,100 back.

This will become my emergency fund. Starting me off on the right foot for this chapter in my debt payoff journey.

piggy bank

Hopefully, I can pay this off in July and be done with it. Because this is such a small, but large step at the same time, I am making this plan twofold.

Pay off My Credit Card

The big part of my plan is to pay off my credit card. Its balance has hovered right around $5,000 for years now.

For most the past year, I have paid it off every month, but then turned around and used it to pay monthly obligations, buy groceries, etc. This way I paid little to no interest, but never really got out from under the debt.

My plan for paying it off is this:

  • Emergency fund of $1,100 established, so I will not focus on any savings right now.
  • Pay minimum on all other debts and cover monthly obligations. (Except for the extra $92 I pay every month towards the car.)
  • Anything extra will go towards the credit card.
  • And probably, most importantly, I will stop using the credit card EXCEPT for gas. (Because of the abundance of times my checking account has been cleared out, I use the credit card for gas.)

Because my income fluctuates greatly these days, this process could takes anywhere from a couple of months to several months. All depends on the number of projects I can pick up and complete.

Tell me, what am I missing? Are there other suggestions you would make for this plan?


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