Can you cover your emergencies?
Excerpt from upcoming blog article
This question was posed in an article in The Atlantic by Neil Gabler recently and the following discussions were fascinating. Based on a recent study 47% of people could not cover a $400 emergency cost without going into debt or selling something. This statistic itself is mind-numbing but definitely not surprising. If anything when I heard it I sighed and thought to myself “I'm not the only one.”
No, you are definitely not the only one. I personally had to borrow money from my younger brother several times in the early years of my marriage to cover embarrassingly small amounts. There was times we needed $1000 to cover a bond payment that was stolen but also smaller amounts such as $35 for a prescription charge or $200 for groceries. Thankfully we have a good support network but simply having a small emergency fund of $1000 set aside in a savings account has saved us many times. Since establishing this fund we have had several sets of emergency dental treatments, replacement mattresses (cats - don't ask), we moved houses urgently and the birth of our fourth child. We have drained and restocked our emergency fund more times than I can count but each time we thank God that we had it to cover us.